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Dispelling the Vapor Around Cloud Computing Steve Mills  IBM Senior VP and Group Executive IBM Software and Systems
Cloud Computing - NIST* Definition   (*National Institute of Standards and Technology) Cloud computing is a model for enabling convenient,  on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.  but ….. this is a technology centric definition
Cloud Computing – A Business Value Cloud computing is a model for  enabling cost effective business outcomes through the use of shared application and computing services .  The value …. if possible …. is better economics in the execution of business processes.
Cloud Computing – Service Models Business Process, Software, Platform and Infrastructure Services and Components to Build Public and Private Clouds   Services Software Hardware Cloud Components Business Process as a Service (BPaaS)  Platform  as a Service (PaaS) Software  as a Service (SaaS) Infrastructure  as a Service (IasS) Cloud Services Components Customers consume  business outcomes  (e.g. payroll processing, HR) by accessing business services  via Web-centric interfaces  on  multi-tenant and shared  infrastructures  without the need to manage or control  the underlying resources Customers use  applications  (e.g. CRM, ERP, e-mail) from  multiple client devices through a Web browser  on  multi-tenant and shared  infrastructures  without the need to manage or control  the underlying resources Customers use  programming languages, tools and platforms  to  develop and deploy applications  on  multi-tenant and shared  infrastructures  with ability to control deployed applications and environments without the need to manage or control  the underlying resources Customers use  processing, storage, networks,  other computing resources  with ability to rapidly and elastically provision and control  resources to  deploy and run software and services without the need to manage or control  the underlying resources
Business Process and Software as a Service are Most Mature Segments of Market;  Private Cloud Delivery Model Resonating Well   Cloud Services 2010 Revenue, ’10-’15 CAGR Business Process as a Service (BPaaS) $9.6B  30% CAGR   Platform  as a Service (PaaS) $4.2B  34% CAGR Software  as a Service (SaaS) $16.5B  26% CAGR Infrastructure  as a Service (IasS) $14.0B  30% CAGR Services $10.8B 26% CAGR Software $10.1B 16% CAGR Hardware $8.6B 22% CAGR Components Cloud Components 2010 Revenue, ’10-’15 CAGR Private  Platform Components $1.1B  18% CAGR Source:  IBM Market Intelligence, 02/11
Cloud Computing – Primary Characteristics ,[object Object],[object Object],[object Object],[object Object],[object Object]
The Cloud Value Proposition is Around Operational Efficiency and Business Transformation   INNOVATVE BUSINESS MODELS IMPROVED OPERATIONS ,[object Object],[object Object],Source: "Cloud will Transform Business as We Know It:  The Secret’s in the Source”, Hfs Research, and the London School of Economics, December, 2010 ,[object Object],[object Object],[object Object],Cloud Market Trends 2011 : “To What Extent Do the Following Aspects of the Cloud Value Proposition Appeal”?
Cloud Value Proposition   Public cloud workload attractiveness for companies with 1,000+ employees Overall, how appealing are the public, private, and hybrid delivery models for your company? 64% 30% Public +113% Private &quot;Very appealing&quot; or &quot;appealing&quot; Source: IBM Market Insights,  Cloud Computing Research , July 2009. n=1,090 64% 38% Hybrid Private +68% &quot;Very appealing&quot; or &quot;appealing&quot; Source: IBM MAP Cloud Workload Adoption Survey, June/July 2009 , n: 731 , 9 countries: US, Canada ,UK, Germany, France, Italy, Japan, China & India,  Audio / Video / Web Conferencing CRM / Sales Force Automation WAN Capacity e-mail Development Environment Data Mining / Analytics Test Environment Infrastructure Transactional Databases Currently Using Plan < 12 Months 6% 6% 7% 8% 14% 16% 18% 22% 6% 6% 11% 9% 5% 3% 4% 5% . . .
Cloud Delivery Models A  private cloud  is one in which both the consumer of cloud services and the provider of those services exist within the same enterprise. The ownership of the cloud assets resides within the same enterprise providing and consuming cloud services. A  public cloud  is one in which the consumer of cloud services and the provider of cloud services exist in separate enterprises. The ownership  of the assets used to deliver cloud services remains with the provider. A  hybrid cloud  combines multiple elements of public and private cloud, including any combination of providers and consumers, and may also contain multiple service layers. PRIVATE CLOUD PUBLIC CLOUD CLOUD DELIVERY MODELS Isolates workload; initial foray into cloud computing  IT organization and cloud users exist across internal boundaries One-to-one relationship between service provider and the consumer organization IT organization and cloud users exist within one management domain One-to-many relationship between service provider and consumers Consumer and provider of cloud services exist within the same enterprise  Department Cloud Consumer and provider of cloud services exist in separate enterprises Exploratory Cloud Enterprise Cloud Open Cloud Exclusive Cloud Few participants, all Internal Many participants, Internal and External Organizational Scope
Spectrum of Deployment Options for Cloud Computing Enterprise Data Center Private Cloud Managed Private Cloud Hosted Private Cloud Shared Cloud Services Public Cloud Services Enterprise Data Center Third-party  operated Enterprise Third-party hosted and operated Enterprises Users ,[object Object],[object Object],[object Object],[object Object],Hybrid Internal and external service delivery methods are integrated Private Public IT capabilities are provided “as a service,” over an intranet, within the enterprise and behind the firewall IT activities / functions are provided “as a service,” over the Internet
IBM Cloud Offerings ,[object Object],[object Object],[object Object],[object Object],[object Object]
IBM Consulting Services for Cloud Strategy and Design ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Cloud Enabled Data Center Portfolio   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Cloud Application Services Portfolio   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
IBM Centers Deliver & Manage Cloud Services Around the World Sao Paulo Raleigh, NC Silicon Valley, CA Boulder, CO Johannesburg Tokyo Seoul Hanoi Singapore Bangalore Hong Kong Beijing Dublin Wroclaw, Poland Ehningen, Germany 7  Cloud Data Centers 11  Cloud Labs 57  Global Delivery Centers 54  Global Command Centers  IBM Worldwide Support Centers Toronto IBM Cloud Lab IBM Cloud Data Center
 

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Steve Mills - Dispelling the Vapor Around Cloud Computing

  • 1.  
  • 2. Dispelling the Vapor Around Cloud Computing Steve Mills IBM Senior VP and Group Executive IBM Software and Systems
  • 3. Cloud Computing - NIST* Definition (*National Institute of Standards and Technology) Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. but ….. this is a technology centric definition
  • 4. Cloud Computing – A Business Value Cloud computing is a model for enabling cost effective business outcomes through the use of shared application and computing services . The value …. if possible …. is better economics in the execution of business processes.
  • 5. Cloud Computing – Service Models Business Process, Software, Platform and Infrastructure Services and Components to Build Public and Private Clouds Services Software Hardware Cloud Components Business Process as a Service (BPaaS) Platform as a Service (PaaS) Software as a Service (SaaS) Infrastructure as a Service (IasS) Cloud Services Components Customers consume business outcomes (e.g. payroll processing, HR) by accessing business services via Web-centric interfaces on multi-tenant and shared infrastructures without the need to manage or control the underlying resources Customers use applications (e.g. CRM, ERP, e-mail) from multiple client devices through a Web browser on multi-tenant and shared infrastructures without the need to manage or control the underlying resources Customers use programming languages, tools and platforms to develop and deploy applications on multi-tenant and shared infrastructures with ability to control deployed applications and environments without the need to manage or control the underlying resources Customers use processing, storage, networks, other computing resources with ability to rapidly and elastically provision and control resources to deploy and run software and services without the need to manage or control the underlying resources
  • 6. Business Process and Software as a Service are Most Mature Segments of Market; Private Cloud Delivery Model Resonating Well Cloud Services 2010 Revenue, ’10-’15 CAGR Business Process as a Service (BPaaS) $9.6B 30% CAGR Platform as a Service (PaaS) $4.2B 34% CAGR Software as a Service (SaaS) $16.5B 26% CAGR Infrastructure as a Service (IasS) $14.0B 30% CAGR Services $10.8B 26% CAGR Software $10.1B 16% CAGR Hardware $8.6B 22% CAGR Components Cloud Components 2010 Revenue, ’10-’15 CAGR Private Platform Components $1.1B 18% CAGR Source: IBM Market Intelligence, 02/11
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  • 9. Cloud Value Proposition Public cloud workload attractiveness for companies with 1,000+ employees Overall, how appealing are the public, private, and hybrid delivery models for your company? 64% 30% Public +113% Private &quot;Very appealing&quot; or &quot;appealing&quot; Source: IBM Market Insights, Cloud Computing Research , July 2009. n=1,090 64% 38% Hybrid Private +68% &quot;Very appealing&quot; or &quot;appealing&quot; Source: IBM MAP Cloud Workload Adoption Survey, June/July 2009 , n: 731 , 9 countries: US, Canada ,UK, Germany, France, Italy, Japan, China & India, Audio / Video / Web Conferencing CRM / Sales Force Automation WAN Capacity e-mail Development Environment Data Mining / Analytics Test Environment Infrastructure Transactional Databases Currently Using Plan < 12 Months 6% 6% 7% 8% 14% 16% 18% 22% 6% 6% 11% 9% 5% 3% 4% 5% . . .
  • 10. Cloud Delivery Models A private cloud is one in which both the consumer of cloud services and the provider of those services exist within the same enterprise. The ownership of the cloud assets resides within the same enterprise providing and consuming cloud services. A public cloud is one in which the consumer of cloud services and the provider of cloud services exist in separate enterprises. The ownership of the assets used to deliver cloud services remains with the provider. A hybrid cloud combines multiple elements of public and private cloud, including any combination of providers and consumers, and may also contain multiple service layers. PRIVATE CLOUD PUBLIC CLOUD CLOUD DELIVERY MODELS Isolates workload; initial foray into cloud computing IT organization and cloud users exist across internal boundaries One-to-one relationship between service provider and the consumer organization IT organization and cloud users exist within one management domain One-to-many relationship between service provider and consumers Consumer and provider of cloud services exist within the same enterprise Department Cloud Consumer and provider of cloud services exist in separate enterprises Exploratory Cloud Enterprise Cloud Open Cloud Exclusive Cloud Few participants, all Internal Many participants, Internal and External Organizational Scope
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  • 16. IBM Centers Deliver & Manage Cloud Services Around the World Sao Paulo Raleigh, NC Silicon Valley, CA Boulder, CO Johannesburg Tokyo Seoul Hanoi Singapore Bangalore Hong Kong Beijing Dublin Wroclaw, Poland Ehningen, Germany 7 Cloud Data Centers 11 Cloud Labs 57 Global Delivery Centers 54 Global Command Centers IBM Worldwide Support Centers Toronto IBM Cloud Lab IBM Cloud Data Center
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