Tan Yew LuanDirector, Cloud and Managed Services

Cloud Adoption Success and Challenges

Results from IBM’s internal cloud deployment

Analytics Collaboration Develop/Test Desktop Storage Product Support

Blue Insight

Social Develop/ Test

Cloud

WorkplaceCloud

Storage Cloud

ProductionCloud

300,000 users, 500 ported applications

Predictive modelling (SPSS) and data mgmt

85% of web conference minutes

> 275M meeting minutes in just six months. . .

Server setup from 5 days to 1 hour

> 90% of new server reqs via this cloud

Expanded deployments & user base

2,000 users China Develop Lab

200 user pilot SBDC on the IBM Cloud

File storage cloud used by > 130K users & applications

Block storage cloud w/ automated tiering w/ 50% reduction $/GB

Private instance up & running

First applications migrated and operating

Refining platform, expanding use

SaaS SaaS IaaS IaaS IaaS IaaS

“Hype” vs. realities: Common “hype” about Cloud Computing

CostSavings

Easy

Cloud:• Rent vs. own computing• Drives growth while

saving money

Unlimited Computing

Power

Fast results

Turnkey

. . . . . . Can be true – IF you set it up that way

Cloud realities: Cloud is already solving many of today’s typical Enterprise challenges

10 weeks: The mean time to deliver a

new (or expanded) IT Service from the time of request. Nearly 40% take more than 90 days

70% of IT budgets are Maintenance (vs. new)

2/3’s of companies miss their original

project/solution deployments.

Infrastructure is ImportantLatin America Financial Services ClientIt offers Corporate Customers access to 60,000 merchants servicing 3 million Prepaid “digital cash” cards.

Problem: grow revenue, slash costs while servicing 200,000+ daily transactions. Cloud Solution: Slashed operational costs -30% while supporting double-digit revenue growth with IBM PureSystems x240 running hypervisor - KVM

Cloud Risks and “Hidden Costs”: One size doesn’t fit all

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Key Takeaway: Cloud Service Level Agreements (SLA’s) are very important. SLA’s record a common understanding about services, availability, security, privacy, governance, data protection, disaster recovery, workloads, audit, priorities, responsibilities, exit strategies, etc.

Cloud Risks and “Hidden Costs”: Projects can fail for many reasons

Unrealistic Expectations Performance

IssuesUnderdeveloped Transformation

Strategy

Business Case

Poor Due Diligence

Security, Data Protection,

Migration, Governance. . .

. . . . . . How do I mitigate Cloud risks?

One of the most significant determinations of success in moving to the cloud is the careful selection of workloads.

Workloadssuggested by

workshop exercises and industry best practices

Workload suggested based on industry best

practices

Source: IBM analytics using input and discussion with workshop participants

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Dynamic Hybrid Cloud is the future.

Private Cloud & ITBenefits:• Fully customizable• Robust management• Secure by design

Best of both worlds. Better outcomes.

Maximize return on existing IT investments

Match workloads to best-fit infrastructure

Hit the right balance of risk to speed

Meet seasonal capacity without CapEx

Add new capabilities quickly

Benefits:• Low entry cost• Pay-per-use• Highly elastic

Dynamic Hybrid

Public Cloud

Hybrid Cloud+

Private Modular Cloud

SoftLayer

Managing across hybrid environments will be another determination of success of cloud adoption

CorporateGovernance

CloudGovernance

IT Governance

Another success factor is the establishment of principles and policies for cloud deployment

IT Storage Resources

IT Network Resources

Service Support

Service Delivery

Financial Management

Security & Compliance Management

IT Governance & Management Controls

Infr

astr

uct

ure

S

ervi

ces

Co

mm

on

IT

Ser

vice

sA

pp

lica

tio

n

Ser

vice

s

06. Service Execution Infrastructure

Service Automation

Automation demands new skill sets to sustain desired behavior and results

Tra

ditio

nal R

ole

Fu

ture

Ro

le

Thinking beyond governance, there is a need to look at new Cloud Roles in the organization

Bottom line: Cloud services demand different roles with different skill sets.

What Should You Do?1. Think big, start small, pilot fast. Start by developing your

business case and remember that Cloud is more than just cost savings. It is truly capable of driving business model transformation.

2. Identify a pilot project to better understand “how” transforming applications delivery can truly drive line of business (LOB) improvements.

3. Remember that not all workloads are suited for Cloud.

4. Successful cloud ecosystem strategies will include both business and IT stakeholder team to accelerate results.

Strategize how to use cloud to drive revenue growth and efficiencies

Build and run your private or hybrid cloud

Utilize cloud services delivered from IBM Cloud

Data Center Expansion

SoftLayer Acquisition

Acquisition Investment

SaaS Offerings

Experts

IBM has invested Billions in Cloud Computing to ensure our clients can grow and prosper …

Strategize how to use cloud to drive savings and revenue growth.

Build and run your private or hybrid cloud.

Utilize cloud services delivered from IBM SmartCloud.

Infrastructureas a Service

Business Processas a Service

Softwareas a Service

Platformas a Service

Hybrid Cloud Technologies

Expert Integrated Systems

Cloud Platform Technologies

Cloud Infrastructure Technologies

Cloud Security Services

Cloud Strategy and Design

Cloud Implementation

Cloud Migration Services

IBM has a full breadth of cloud offerings to help you achieve powerful business outcomes, no matter where your entry point is.

IBMhosted and operated

IBMhosted and operated

Customer operated

Private cloud Managed private cloud Dedicated private cloud

IBMhosted and operated

Shared (community)

private cloud

Public cloud services

Low— Customization —High

Enterprisedata center

Enterprise Enterprise

Hosted by IBMHosted by IBMHosted by IBMOn customer premiseOn customer premise

IBMoperated

Enterprisedata center

Private clouds Public cloudHybrid cloud

Users

We can tailor cloud delivery models to meet your unique needs—from private, public to hybrid cloud.

Cloud delivery models to meet client needs

IBMhosted and operated

IBMhosted and operated

Customer operated

Private cloud Managed private cloud Dedicated private cloud

IBMhosted and operated

Shared (community)

private cloud

Public cloud services

Low— Customization —High

Enterprisedata center

Enterprise Enterprise

Hosted by IBMHosted by IBMHosted by IBMOn customer premiseOn customer premise

IBMoperated

Enterprisedata center

Private clouds Public cloudHybrid cloud

Users

PMCSCE+

SoftLayer

PMC +

Private Modular Cloud Concept

CloudManagement

100 VMs

CloudResource

Pool

Storage

100 VMs

CloudResource

Pool

Storage

NewResource

CloudResource

Pool

Storage

Existing Resource

CloudResource

Pool

Storage

Cloud User Portal

Cloud UserIBM SCO

Software Image

SoftLayer Cloud Scenario - DMZ

5 VMs

On PremiseResource

Storage

Firewall

End User

Internet

5 VMs

On PremiseResource

Storage

DMZInternal

SoftLayer Cloud Scenario - DMZ

End User

5 VMs

CloudResource

Pool

Storage

5 VMs

On PremiseResource

Storage

Firewall

Internal