© 2012 IBM CorporationIM AR
Cloudnomics:The Power of CloudDriving Business Model Innovation
Cezar Taurion
Technical Evangelist
© 2012 IBM Corporation4 IM AR
The US Patent and Trademark Office awarded IBM an average 22.6 patents per working day in 2010, for a total 5,896.
6,180 U.S. patents in 2011
Inovação na IBM: inserido no DNA corporativo
The top-10 receivers of patents in 2010, according to IFI Claims Patent Services:
1. IBM (5896); United States2. Samsung (4551); South Korea3. Microsoft (3094); United States4. Canon (2552); Japan5. Panasonic (2482); Japan6. Toshiba (2246); Japan7. Sony (2150); Japan8. Intel (1653); United States9. LG Electronics (1490); South Korea10. HP (1480); United States
IBM e Governo Federal anunciam centro de pesquisas no Brasil08 de junho de 2010 – 19h22
�Primeiro da América do Sul.
�Tecnologias para tornar o Planeta Mais Inteligente.
�Sistemas humanos inteligentes para grandes eventos, como Copa 2014 e Olimpíadas 2016.
�Sistemas inteligentes para automação de serviços.
�Sistemas inteligentes para descobertas de recursos naturais (petróleo e gás) e logística.
© 2012 IBM Corporation6 IM AR
What are general trends in the IT industry?
Gartner
� Cloud Computing
� Mobile Applications & Media Tablets
� Next-GenerationAnalytics
� Social Analytics
� SocialCommunications & Collaboration
� Video
� Context-AwareComputing
� UbiquitousComputing
� Storage ClassMemory
� Fabric-BasedInfrastructure and Computers
Forrester
� Smart Computing
� Empowerment
� Cloud Computing
� IT as Business Technology
� Mobile Enterprise Apps
� Disruption-as-a-Service
� HW-SW-Appliances
� Next-Gen Analytics
� IT and Sustainability
� Social Media
IDC
� Cloud Computing in theDatacenter
� Public Cloud Services
� Platform-as-a-Service
� Enterprise Mobility
� Free SW, Open Source
� BPM Platforms
� BI and Analytics
� Enterprise Data
� Social Media
� Smart Devices
Ovum
� IT Security
� Data Management
� Business Analytics
� Mobility
� Datacenter Transformation
� Cloud Computing
� Collaboration
� IT and Sustainability
� Drive IT as Business
� Context-Aware Computing
Source: Gartner, cio.de, IBM MD Germany, IBM MI, HorizonWatch
IBM Horizon Watch 2012
� Cloud Computing
� Virtualization
� Social Business
� Mobile Computing
� Big Data
� Analytics
� IBM Watson
� Human / Computer Interaction
� Security
� Sustainability & Green IT
� Consumerizationof IT
© 2012 IBM Corporation8 Cloud Computing - Strategic View IM AR
Cloud is a new Consumption & Delivery Model that relies on the industrialization of delivery for IT supported Services
� a new consumption and
delivery model inspired by
consumer Internet
services.
� Private, Public and Hybrid
� Workload and/or
Programming Model Specific
� The Industrialization of
delivery for IT supported
Services
� Self-service
� Sourcing options
� Economies-of-scale
“Cloud” can be:“Cloud” represents:
“Cloud” enables:“Cloud” is:
© 2012 IBM Corporation9 IM AR
Cloud computing is more than the sum of the parts…
Virtualization Standardization Automation Self Service+ + +
Cloud Computing
With
� Enables flexibility
� Increase utilization
� Energy efficient
� Soft configuration
� Infrastructure abstraction
Without
� Physically constrained
� Capital intensive
� Hard configuration
� Linked to PO process
With
� Simplification
� Few configurations
� Enables automation
� Easier support
Without
� Physically constrained
� Many configurations
With
� Low human involvement
� Rapid deployment & mgt
� Repeatable configuration
� Improves compliance
Without
� Manually intensive
� Skill dependent
� Error prone
� Costly
With
� User in control
� Cost and usage choices
� Increased visibility
� IT/Business alignment
Without
� Dependency of availability of data centre staff
� Lack of awareness
© 2012 IBM Corporation10 IM AR
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.
Standardization, Automation and Self Service have changed many other industries become more efficient.
© 2012 IBM Corporation11 IM AR
Software/ Application-as-a-Service
Financials
Industry SpecificApplications
CRM/ERP/HR
Collaboration
Platform-as-a-Service
Middleware
Database
Web 2.0 ApplicationsRuntime
DevelopmentTools
Desktop
Infrastructure-as-a-Service
Servers Networking StorageData Center
Fabric
Consolidated, standardised, virtualised,shared, dynamically provisioned, automated
Cloud Service Models
© 2012 IBM Corporation12 IM AR
A range of deployment options
Private PublicHybrid
IT capabilities are provided “as a service,” over an intranet, within the enterprise and behind the firewall
Internal and external service delivery methods are integrated
IT activities / functions are provided “as a service,” over the Internet
Enterprise data center
Managed private cloud
� Third-party operated
� Client owned
� Mission critical
� Packaged applications
� High compliancy
� Internal network
Enterprise data center
Private cloud
� Private
� On client premises
� Client runs/ manages
Public cloud services
Users
B
� Shared resources
� Elastic scaling
� Pay as you go
� Public Internet
A
Member cloud services
A
Enterprise
B
� Mix of shared and dedicated resources
� Shared facility and staff
� Virtual private network (VPN) access
� Subscription or membership based
Hosted private cloud
Enterprise
� Third-party owned and operated
� Standardization
� Centralization
� Security
� Internal network
© 2012 IBM Corporation13 IM AR
Cloud Computing Reference Architecture (The Open Group)
Governance
Security, Resiliency, Performance & Consumability
Cloud ServiceCreator
Cloud Service ProviderCloud ServiceConsumer
Cloud Services
IaaS
PaaS
SaaS
BPaaS
Common Cloud
Management Platform
Cloud Service Integration
Tools
Consumer In-house IT
Infrastructure
Middleware
Applications
Business Processes
OSS – Operational Support Services
BSS – Business Support Services
Subscription Management
PricingEntitlement
Management
Metering Rating Billing
Clearing & Settlement
Accounts Payable
Accounts Receivable
Customer Account
Management
Service Offering
Catalog
Service Offering
Management
Contracts & Agreement
Management
Service Request
Management
Order Management
TransitionManager
DeploymentArchitect
OperationsManager
Service Provider Portal & API
Consumer
Administrator
Consumer BusinessManager
Consumer End user
Service Creation Tools
Service Management Development
Tools
Service Runtime Development
Tools
Software Development
Tools
Image Creation Tools
Service Component Developer
Infrastructure
Security &Risk Manager
CustomerCare
ServiceManager
BusinessManager
Service
Composer
OfferingManager
Service
Integrator
Serv
ice
Ma
na
gem
ent
Servic
e Cons
umer P
orta
l & A
PI
Service
Dev
elopm
ent
Portal &
AP
I
AP
I
AP
I
AP
I
AP
I
Existing & 3rd party services, Partner
Ecosystems
ProvisioningIncident & Problem
Management
IT Service Level
Management
Service Automation Management
Service Delivery Catalog
Service Request
Management
Change & Configuration
Management
Image Lifecycle
Management
Monitoring & Event
Management
IT Asset & License
Management
Capacity & Performance
Management
Platform & Virtualization Management
Infr
ast
ructu
reM
gm
t Inte
rface
sP
latfor
m M
gm
tIn
terf
aces
Softw
are
Mg
mt
Inte
rface
sB
P M
gm
tIn
terf
ace
s
© 2011 IBM Corporation
© 2012 IBM Corporation14 IM AR
13%
41%21%
28%38%
21%
Today 3 yrs
Nearly half (48%) of CIOs surveyed evaluate cloud options first, over
traditional IT approaches, before making any new IT investments
Cloud is widely recognized as an increasingly important technology;adoption is expected to accelerate rapidly in the coming years
Source: (1) 2011 joint IBV/EIU Cloud-enabled Business Model Survey of 572 business & IT leaders; Q4. Which of the following most accurately describes your organisation’s level of cloud technology adoption today and which do you expect will best describe it in three years? Sizing the cloud , Forrester Research, April 21, 2011; http://www.cio.com/article/684338/Survey_CIOs_Are_Putting_the_Cloud_First
Piloting
Adopting
SubstantiallyImplemented
+215%
+33%
72%
91%
What is Your Organization’s Level of Cloud Adoption?
% of Respondents
The Global Cloud Computing Market is Forecast to Grow 22% per year through 2020
$0B
$50B
$100B
$150B
$200B
$250B
2011 2015 2020
$241B
$41B
$150B
Source: Sizing the cloud, Forrester Research, Inc., April 21, 2011
© 2012 IBM Corporation15 IM AR
14% 10%5%
21%22% 34%
32%44%
43%
<$1B $1B - $20B >$20B
Piloting
Adopting
SubstantiallyImplemented
67%
76%82%
Company Annual Revenues
Today, at least two thirds of companies of all sizes are actively either experimenting with or implementing cloud
Source: (1) 2011 joint IBV/EIU Cloud-enabled Business Model Survey of 572 business & IT leaders, Q4, n=363
What is Your Organization’s Level of Cloud Adoption?% of Respondents; Today
© 2012 IBM Corporation17 IM AR
IT is drawn to cloud’s cost, efficiency and control…
…while business users are drawn to cloud’s simplified,self-service experience and new service capabilities.
of CIOs plan to use cloud—up from 33% two years ago.
of business executives believe cloudenables business transformation and leaner, faster, more agile processes.
2011 IBM CIO Study, London School of Economics, December 2010
Eff
icie
ncy
Tra
nsfo
rmati
on
IT and Business are attracted to cloud for different reasons.
© 2012 IBM Corporation18 IM AR
Virtualized environments only get benefits of scale if
they are highly utilized
Drives lower capital requirements
Reduced complexity, increased automation possible; reduced
admin burden
Take repeatable tasks and automateL
ab
or
Le
ve
rag
eIn
fra
str
uc
ture
L
eve
rag
e
Clients who can “serve themselves” require less support and get services
Major factors driving cloud
Self Service
Automation of Management
Standardization of Workloads
Virtualization of Hardware
Utilization of Infrastructure
© 2012 IBM Corporation19 IM AR
Value delivered
Change management
Test provisioning
Install database
Install of operating system
Provisioning environment
Design and deploy business applications
From traditional To cloud
Months
Weeks
1 day
1 day
▄
Months
Days or hours
20 minutes
12 minutes
30–60 minutes
51% cost savings
Days/Weeks
“Our commitment to informed decision making led us to consider private cloud
delivery of Cognos via System z, which is the enabling foundation that makes
possible +$20M savings over 5 years.”
– IBM Office of the CIO
IT benefits from Cloud Computing are real
© 2012 IBM Corporation20 IM AR
Bechtel’s New Benchmarks
Source: CIO Computing, November 2008
COMPANY TECHNOLOGY BENCHMARK WHAT BECHTEL LEARNED
COMPANY BECHTEL
Wide-Area Network $10-$15 per megabit $500 per megabitData Centers located where there is
already a lot of bandwidth lowers
cost and bring data to the network
Servers
1 System
Administrator per
20,000 servers
1 System
Administrator per
100 servers
Built whatever, whenever, wherever
business wanted. Google
standardized server infrastructure
Virtualization
Storage costs 15
cents per gigabyte
per month
Storage costs $3.75
per gigabyte per
month
Storage was 'cheap' because storage
was virtualized and more highly
utilized
Applications
1 Application for 1
million users.
Upgraded 4 times
per year
230 Applications up
to 5 versions each;
Upgrades and
training were
constant
Converting 50 most heavily used
applications into single instance
software as a service apps run from
a Google like portal
© 2012 IBM Corporation21 IM AR
Mobility, social media, increasing digitization and new analytics capabilities are conspiring to drive broad business change
Mobile revolution
� Connectivity, access and participation are growing rapidly
� Smart devices are becoming the primary route to get connected
� Devices are getting smarter as they are increasingly enriched by mobile apps
Major Technology Trends driving Business Change
Social media explosion� Social media is quickly becoming the primary communication and collaboration format
� GenY’s or “digital natives” use of technology and social media platforms is accelerating adoption
� Enterprises are adopting social media but are struggling to realize the value and manage risk
Hyper digitization
� Digital content is produced and accessed more quickly than ever before
� Internet traffic is growing globally driven by consumer use of video, mobile data, interconnectedness
� An increasing number of connected devices and sensors is further driving growth
The power of analytics
� New capabilities for real time analysis, predictive analytics and micro-segmentation are emerging
� Top performing companies use analytics to drive action and business value
� Analytics are making information “consumable” and is transforming all parts of the organization, from customer intimacy to supply chain management
Source: IBV Analysis
© 2012 IBM Corporation25 IM AR 25
Mobile explosion
“By 2013, mobile phones will overtake PCs as the most common Web access device worldwide”
Source: Gartner Highlights Key Predictions for IT Organizations and Users in 2010 and Beyond:
http://www.gartner.com/it/page.jsp?id=1278413
Researchers reported that time spent on apps began to outpace time spent on the desktop or mobile Web
Researchers reported that time spent on apps began to outpace time spent on the desktop or mobile Web
BY 2015 mobile application development projects targeting smartphones/tablets will outnumber native PC projects by a ratio of 4-1
BY 2015 mobile application development projects targeting smartphones/tablets will outnumber native PC projects by a ratio of 4-1
© 2012 IBM Corporation26 IM AR
Trigger for transformation
InternetWeb2.0
Web 3.0 (Cloud, Mobile, Social)
1964 20082003
26
19941981
Mainframe
Client Server/PC
Mobile Devices (Smartphones,
Tablets, etc)Generations ofComputing Platforms
Phases of theInternet
2012
2020...
Source: HorizonWatch: Top Technology Trends To Watch In 2012, Bill Chamberlin
The 3rd phase of the internet “colliding” with the 3rd generation of computing platform
© 2012 IBM Corporation27 IM AR
IT Service Provider “IT as a function of the business“
IT Strategy for the next decade: an evolution of today‘s focus topics
VirtualizationConsolidation
Cloud
AutomationAutomationAutomationAutomation
SOA
on demand
Service Management
Service QualityCyber CrimePrevention
Big Data
Analytics
Operational Excellence
MobilityCollaborationCollaborationCollaborationCollaboration
Open Source Social MediaData CenterOptimization
Appliances
Smart Devices
Cost Pressure
DataManagement
IT Security
...
...
© 2012 IBM Corporation28 IM AR
Cloud harnesses the capabilities borne out of these trends to empower six potentially “game changing” business enablers
Source: IBV Analysis
Cloud’s Business Enablers
Cost Flexibility
1
� Shifts fixed to variable cost� Pay as and when needed
Business Scalability
2
� Provides limitless, cost-effective computing capacity to support growth
Masked Complexity
4
� Expands product sophistication� Simpler for customers/usersContext-driven
Variability5
� User defined experiences� Increases relevance
Ecosystem Connectivity
6
� New value nets� Potential new businesses
Market Adaptability
� Faster time to market� Supports experimentation
3
© 2012 IBM Corporation29 IM AR
Cost Flexibility
Cloud enables businesses to reduce fixed IT costs and shift to amore variable, “pay-as-you-go” cost structure
1
Characteristics� Shifts CapEx to OpEx, when and as
needed� Shifts cost from fixed to variable� Generates faster payback and higher
ROI
Finding� 31% of executives see cloud’s ability
to provide pay-as-you go, cost flexibility as a top benefit1
Example: Etsy – the world’s handmade marketplace
The cloud frees up capital by significantly reducing the need for IT investment
� Etsy is an online marketplace to buy and sell handmade goods. In addition to bringing buyers and sellers together, Etsy offers product recommendations based on analysis of buyer preferences
� Etsy uses cloud based analytics capabilities for its targeted marketing approach by renting hundreds of computers every night to analyze data from a billion views of its website.
� Cost flexibility of the cloud allows Etsy access to tools and compute power that only large retailers like Gap or Ikea could previously afford.
Source: (1) 2011 joint IBV/EIU Cloud-enabled Business Model Survey of 572 business & IT leaders; Q6a3-Q6b3(1): Expected benefits of cloud – Greater cost flexibility (today and next three years), N=572
© 2012 IBM Corporation30 IM AR
Business Scalability
Cloud enables businesses to grow efficiently, expanding the range of business options
� Netflix streams movies on-demand with large surges of capacity required at peak times.
� Use of cloud allowed Netflix to rapidly scale up its business without having to buy, support and operate infrastructure and resources to meet its growth requirements
Characteristics� Rapid / elastic provisioning of resources� No scale limitations� Benefit from scale economics without
achieving large volumes on your own
Finding� 32% of executives see business
scalability as a top cloud benefit1
Example: Netflix
Cloud’s ubiquitous and nearly unlimited computing power drives scale economics and enables self-provisioning and peak/non-peak responsiveness
2
Source: (1) 2011 joint IBV/EIU Cloud-enabled Business Model Survey of 572 business & IT leaders,\; Q6a2-Q6b2(1): Expected benefits of cloud – More scalable and flexible services (today and next three years), N=572; Source: (2) http://radar.oreilly.com/2011/05/netflix-cloud.html
© 2012 IBM Corporation31 IM AR
Example: Xerox Mobile Print
Cloud enables businesses to attract a broader range of consumerswith elegantly simple solutions
� The Xerox Mobile Print platform uses tools via a cloud to convert and process print requests from any mobile device (e.g. tablet, smartphone) to a Xerox printer
� Removes complexity for users – no need to understand / install / maintain printer device drivers for either their mobile device or targeted printer
Characteristics� Expands feasible range of
sophistication in products and services
� Minimizes requirements of user to understand how product works or how to maintain it
Finding� Cloud’s ability to mask complexity
is one of the lesser known business enablers with less than 20% of executives seeing it as a top benefit1
Cloud-enabled services leave the complexity to the experts, delivering only outcomes to the end-user
17% 22%
Source: (1) 2011 joint IBV/EIU Cloud-enabled Business Model Survey of 572 business & IT leaders; Q6a5-Q6b5(1): Expected benefits of cloud – Reduced complexity for customers (today and next three years), N=572
Masked Complexity4
© 2012 IBM Corporation32 IM AR
Customer Value Proposition
What is my customer value proposition?
� What mix of products and services?
� Which customer needs are being satisfied?
How will I do what I do?
� What kind of delivery structures?
� Which operating model?
� What is the cost structure?
What is my role in the value chain?
� What to do and when to rely on others?
� Where to specialize and how to set up interdependent networks?
Valu
e C
hain
Which customers am I serving?
� Which customer segments?
� What type of relationships to maintain?
� Which channels?
How do I generate revenue?
� Which pricing models?
� How and where to capture value?
Cloud business enablers are already driving innovation across company/industry value chains and customer value propositions
32
Cloud Enablement Framework
© 2012 IBM Corporation33 IM AR
Enterprises are leveraging cloud to enhance, extend and invent new customer value propositions
Customer Value Proposition
Enhance Extend Invent
Enhance
� Improve current value proposition to retain/attract customers for existing products and services
� Appeal to existing customer segments
� Garner incremental revenue
Extend
� Extend value proposition to attract customers to different products and services
� Attract existing or adjacent customer segments
� Generate significant new revenues
Invent
� Construct radically different value proposition to create a new “need” and own the market
� Form new customer segments
� Generate entirely new revenue streams
33
Cloud Enablement Framework
© 2012 IBM Corporation34 IM AR
61%
54%
36%
68%
63%
48%
Changingproduct/service mix
Finding additionalsources of revenue
Developing flexiblepricing models
Invent: Some organizations are using cloud to invent entirely new customer experiences by creating new offerings
Invention of new customer value propositions comprise ways in which cloud is used to create new customer needs and form new markets
Situation
� Apple’s iOS platform enables anyone to create an application –around gaming, productivity or entertainment – for use on an Apple mobile device. The best apps are sold through the AppStore.
Value Created
� A completely new ecosystem of professional and amateur developers
� A radically different value proposition that dominates the market
Example: Apple’s iOSHow is Cloud Substantially Changing Your Customer Value Proposition?
% of Respondents
Source: 2011 IBM/EIU Cloud Survey Results, Q9ac/bc : How do you intend to change your value proposition ? n (today) = 28; n (in 3 years) = 136. The question has a reduced sample size, since only those respondents were asked this who affirmatively answered Q9a1/b1 (Impact of cloud on value proposition ) with Substantially changing the value proposition in order to generate additional revenues
Today In 3 years
© 2012 IBM Corporation35 IM AR
Cloud is also being leveraged to improve, transform and create new organization and industry value chains
Imp
rove
Tra
ns
form
Cre
ate
Improve
� Increase efficiency and effectiveness of the organization
� Increase partnering, sourcing, and collaboration
Transform
� Change organizational role within the industry or enter a different industry value chain
� Develop new operating capabilities
� Enter adjacent industries
Create
� Build a new industry value chain or disintermediate an existing one
� Radically change industry economics
Valu
e C
hain
Cloud Enablement Framework
© 2012 IBM Corporation36 IM AR
47%
37%
8%
3%
3%
2%
10%
48%
16%
17%
4%
5%
Improve existing capabilities in single area ofour value chain
Improve existing capabilities across multipleareas of our value chain
Change our role within industry ecosystem
Redesign our industry ecosystem
Enter a new industry
Create a new business model/new industry
Create: Organizations expecting to use cloud to redesign their business model or industry, will quadruple over the next 3 years
Creation of new enterprise or industry value chains or
ecosystems can drive value through industry model innovation
Example: Salesforce.com
Situation
� Salesforce.com radically altered the traditional software industry by offering a cloud-based, managed solution that automated the critical function of marketing, sales and customer relationship management
Value Created
� Rules for delivery, usage, support and licensing of critical business software were radically rewritten
� Balance of power in the industry is now shifting from the traditional software licensing model to a software-as-a-service model
Source: 2011 IBM/EIU Cloud Survey Results, Q8: What is the primary focus of your organisation’s cloud technology adoption strategy ? n (today) = 572; n (in 3 years) = 572
What is the Primary Focus of Your Organization’s Cloud Adoption Strategy?
% of Respondents
Today In 3 years
© 2012 IBM Corporation37 IM AR
We classify organizations according to the extent to which their use of cloud impacts value chains and value propositions
Disruptors create radically different value propositions, generate new customer needs and segments. They disintermediate existing industries or even create new ecosystems
Innovators significantly extend customer value propositions resulting in new revenue streams and transform their role within their industry or enter a different industry ecosystem
Optimizers use the cloud to incrementally enhance their customer value propositions while improving their organization’s efficiencyIm
pro
ve
Tra
nsfo
rmC
rea
te
Enhance Extend Invent
Va
lue
Ch
ain
Customer Value Proposition
Optimizers
Disruptors
Innovators
Organizations should determine how and to what degree
cloud can be used to enable their business model
Cloud Enablement Framework
© 2012 IBM Corporation38 IM AR
Optimizers, innovators and disruptors each face strategic opportunities and significant risks
� Untested business models may not succeed
� Fast followers are often more successful than first movers
� Rapid replication of innovation by competitors
� Value capture may not be sustainable
� Realization of limited revenue or market share gains
� Increased dependency on partners
� Potential industry disruption from less risk averse player
Major Risks
� Capture unique competitive edge through creation of new or disruption of existing industry
� Invent new customer needs or define entirely new markets
� Take advantage of and sustain first mover advantage
� Expand ability to move into adjacent market or industry spaces
� Combine previously unrelated elements of the value chain and value proposition to increase total value
� Gain competitive advantage
� Deepen customer relationships by expanding value
� Increase partnering by applying cloud� Reduce costs by leveraging cost
flexibility� Increase overall efficiency
Major OpportunitiesOrganizational Classification
Optimizers
Innovators
Disruptors
© 2012 IBM Corporation39 IM AR
Organizations generally fall into one of the three categories: optimizers, innovators or disruptors
Imp
rove
Tra
nsfo
rmC
rea
te
Enhance Extend Invent
Optimizers
Disruptors
Innovators
Va
lue
Ch
ain
Customer Value Proposition
Positioning of an organization’s cloud-enabled initiative within the CeBM framework involves understanding the impact of the business model, not merely the intent.
Force.com
Application Platform
3M
Visual Attention Service
Xerox
Mobile Print
Apple
Application Platform
Animoto
Custom Presentations
North Carolina State University
Virtual Computing Lab
Organization
© 2012 IBM Corporation41 IM AR
Organizations generally fall into one of the three categories: optimizers, innovators or disruptors
Imp
rove
Tra
nsfo
rmC
rea
te
Enhance Extend Invent
Optimizers
Disruptors
Innovators
Va
lue
Ch
ain
Customer Value Proposition
Positioning of an organization’s cloud-enabled initiative within the CeBM framework involves understanding the impact of the business model, not merely the intent.
Force.com
Application Platform
3M
Visual Attention Service
Xerox
Mobile Print
Apple
Application Platform
Animoto
Custom Presentations
North Carolina State University
Virtual Computing Lab
Organization
© 2012 IBM Corporation42 IM AR
Cloud’s business enablers are fuelling innovation and empowering organizations to optimize, innovate and disrupt business models
Impro
ve
Tra
nsfo
rmC
reate
Enhance Extend Invent
Valu
e C
ha
in
Customer Value Proposition
Optimizers
Disruptors
Innovators
Customer Value Proposition
Va
lue
Ch
ain
Cloud Enablement Framework
Context-driven Variability
5
Masked Complexity
4
Market Adaptability
3
Business Scalability
2
Ecosystem Connectivity
6
Cost Flexibility
1
Cloud’s Business Enablers
Cloud offers six “game changing”business enablers …
…that are fuelling innovations across enterprise value chains and customer value propositions…
…empowering organizations to optimize, innovate or disrupt business models
Organizations need to assess themselves using the Cloud Enablement Framework
and examine the potential to innovate by leveraging the cloud’s business enablers
© 2012 IBM Corporation43 IM AR
There are three initiatives you can start today to capture value from cloud-enabled business models
1. Establish shared responsibility for cloud strategy and governance across the Business and IT
2. Look beyond your organization’s borders to maximize value derived from your cloud adoption
3. Strategize whether your organization will be an Optimizer, Innovator or Disruptor through the use of cloud-enabled business models
© 2012 IBM Corporation44 IM AR
Envisioning the full potential of cloud requires organizations to challenge existing approaches in their business and industry
Organizations that maximize the potential of cloud’s business enablers can position themselves to capture significant value and sustainable advantage
… you could reach hitherto unaddressed customers or
markets and target them based on their individualized preferences
through analytical insights?
Reflecting on your business, question yourself – “What you would do if…
… you had access to unlimited computing
resources to scale your business?
… you could easily and seamlessly connect and
collaborate with business partners and customers?
… you could inexpensively and rapidly develop and
launch new product & service offerings?
…you could give any of your customers access to any of your products and services anytime, anywhere, on any
device?
…you could redefine your role in your industry and change your competitive
positioning?
© 2012 IBM Corporation45 IM AR
Consolidate
Standardizeand automate
� Reduce infrastructure complexity
� Reduce staffing requirements
� Manage fewer things better
� Lower operational costs
� Remove physical resource boundaries
� Increase hardware utilization
� Reduce hardware costs
� Simplify deployments
� Standardize services
� Reduce deployment cycles
� Enable scalability
� Flexible delivery
=Cost
Flexibility
Virtualize
Dynamic
Cloud Computing deployment became part of the existing IT optimization strategy and roadmap
© 2012 IBM Corporation46 IM AR
Ready
for Cloud
Some workloads are ready for cloud delivery
Sensitive Data
Complex Processes & Transactions
Regulation Sensitive
Not yet Virtualized
3rd Party SW
Highly Customized
Analytics
Collaboration
Development & Test
Workplace, Desktop & Devices
Infrastructure Storage
Infrastructure Compute
Business Processes
Industry Applications
Pre-Production Systems
Information Intensive
Isolated Workloads
Mature Workloads
Batch Processing
May not yet
be ready
for migration
© 2012 IBM Corporation47 IM AR
The realities of cloud versus hype
Source: Market Insights and Gartner
Reality Today
Internal IT plus 3rd party for some things
Everything in the cloud and all at once
Cloud Hype
Sourcing mixture -retain legacy, plus
private/hybrid, public
Future Reality
Trad. SO Trad. SO
So, no “BIG BANG” !
≠
People tend to overestimate what will happen two years from now andunderestimate what will happen in 10.
© 2012 IBM Corporation48 IM AR
Cloud Computing has moved beyond the hype. It is a highly disruptive trend that brings with it new opportunities
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“Cloud services are interconnected with and accelerated by other disruptive technologies, including mobile devices, wireless networks, big data analytics, and social networking. As during the mainframe and PC eras, the new platform promises to radically expand the users and uses of information technology, leading to a wide and entirely new variety of intelligent industry solutions.” –IDC
Disruption
“In 2012, mobile workers and consumers will embrace tablets, mobile content, mobile video and personal cloud services at unprecedented levels. Nearly 1 in 5 professionals with three or more devices will adopt a personal cloud service for online storage, backup and synching.” – Yankee Research
“What supply chain models did to manufacturing is what cloud computing is doing to in-house data centers. It is allowing people to optimize around where they have differentiated capabilities.” – Gartner
Opportunity
Mobile Cloud Services
© 2012 IBM Corporation49 IM AR
What is coming?
In 2021, cloud computing is simply computing,
corporate office parks are senior housing facilities and
the IT organization of the future has been absorbed by
the business.
� Internal IT becomes an internal cloud.
� IT becomes a services broker.
� IT will become a function of the business.
Gartner, 2011
© 2012 IBM Corporation50 IM AR
dW Brasil: www.ibm.com/developerworks/br/
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Acessem agora!
*Conheçam o IBM SmartCloud Provisioning – Download gratuito! (Universidade)
http://www.ibm.com/developerworks/br/downloads/tiv/smartcloud/index.html
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© 2012 IBM Corporation51 IM AR
Obrigado!
www.ibm.com/developerworks/blogs/page/ctaurion
www.computingonclouds.wordpress.com
@ctaurion
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