Seeing Through the Cloud: The IBM Approach to Cloud Computing

1. Seeing Through the Cloud: The IBM Approach to Cloud Computing

2. Agenda • Intro to cloud computing • IBM Perspective and Offerings • Summary

3. What is Cloud Computing? • Cloud Computing is about Delivery of IT Services In a Flexible Manner That is fast.

4. What is Cloud Computing? • Services such as Operating Systems (Infrastructure as a Service) Middleware (Platform as a Service) Applications (Software as a Service)

5. IT-as-a-Service can be segmented in three layers Market Examples IBM Examples Collaboration CRM/ERP/HR Business Processes Industry Applications BPM BlueWorks Software-as-a-Service Middleware Web 2.0 Application Runtime Java Runtime Developer Cloud, AMI Images Database Development Tooling Platform-as-a-Service Servers Networking Data Center Fabric Storage Shared virtualized, dynamic provisioning Computing onDemand Infrastructure-as-a-Service

6. What is Cloud Computing? A user experience and a business model • Cloud computing is an emerging style of IT delivery in which applications, data, and IT resources are rapidly provisioned and provided as standardized offerings to users over the web in a flexible pricing model. An infrastructure management and services delivery methodology • Cloud computing is a way of managing large numbers of highly virtualized resources such that, from a management perspective, they resemble a single large resource. This can then be used to deliver services with elastic scaling. Service Consumers DatacenterInfrastructure AccessServices Monitor & ManageServices & Resources IT Cloud Component Vendors/Software Publishers Service Catalog, ComponentLibrary CloudAdministrator Publish & UpdateComponents, Service Templates

7. Cloud Computing Delivery Models Flexible Delivery Models Public … • Service provider owned and managed. • Access by subscription. • Delivers select set of standardized business process, application and/or infrastructure services on a flexible price per use basis. Private … • Privately owned and managed. • Access limited to client and its partner network. • Drives efficiency, standardization and best practices while retaining greater customization and control Cloud Services Cloud Computing Model Hybrid … • Access to client, partner network, and third party resources .… Customization, efficiency, availability, resiliency, security and privacy .…Standardization, capital preservation, flexibility and time to deploy ORGANIZATION CULTURE GOVERNANCE ...service sourcing and service value

8. Flexibility Cloud-onomics CLOUD COMPUTING + = + VIRTUALIZATION STANDARDIZATION AUTOMATION Cost …leveraging virtualization, standardization and automation to free up operational budget for new investment.

9. Infrastructure Leverage Virtualization of Hardware Drives lower capital requirements Virtualized environments only get benefits of scale if they are highly utilized Utilization of Infrastructure Automation of Management Take repeatable tasks and automate Labor Leverage Standardization of Workloads More complexity = less automation possible = people needed Major Factors Driving Cloud-onomics

10. Enterprise Benefits from Cloud Computing Capability From To Cloud is a synergistic fusion which accelerates business value across a wide variety of domains. Legacy environments Cloud enabled enterprise

11. 1997 Today CIOs 128 1 Host data centers 155 7 Web hosting centers 80 5 Network 31 1 Applications 15,000 4,700 IBM’s approach is based on our transformation IBM IT Transformation • From 2002 through 2007, IBM's own IT investments delivered a cumulative benefit yield of approximately $4 billion. For every dollar invested, we saw a $4 cumulative benefit. Data Center Efficiencies Achieved • Consolidation and virtualization - thousands of servers onto approximately 30 IBM System z™ mainframes. • Additional virtualization leveraging System p, System x and storage across enterprise. • Substantial savings being achieved in multiple dimensions: energy, software and system management and support costs. • The virtualized environment will use 80% less energy and 85% less floor space. • 2X existing capacity, no increase in consumption or impact by 2010. Project Big Green Cloud-enabled on demand IT delivery solution • Self-service for 3,000 IBM researchers across 8 countries. • Real time integration of information and business services.

12. New Development Liberated funding for new development, transformation investment or direct saving Deployment (1-time) Hardware Costs (annualized) Labor Costs ( - 81%) Hardware Costs ( - 89%) IBM Technical Adoption Program - ROI AnalysisInnovation Cloud for 100,000 Subscribers Reduced Capital Expenditure Reduced Operations Expenditure Additional Benefits Reduced risk, less idle time, more efficient use of energy, acceleration of innovation projects, enhanced customer service Without Cloud With Cloud 100% Strategic Change Capacity Software Costs Power Costs Current IT Spend Labor Costs (Operations and Maintenance) Business Case Results: Annual savings: $3.3M (84%) from $3.9M to $0.6M Payback Period: 73 days Net Present Value (NPV): $7.5M Internal Rate of Return (IRR): 496% Return On Investment (ROI): 1039% Software Costs Hardware, labor & power savings reduced annual cost of operation by 84% Power Costs (- 89%)

13. What workloads are we seeing move to Cloud delivery? Workload Characteristics for Cloud Delivery What workloads may not be ready for Cloud delivery today? • Single virtual appliance workloads • Test and Pre-production systems • Mature packaged offerings like email and collaboration • Software development environments • Batch processing jobs with limited security requirements • Isolated workloads where latency between components is not an issue • Storage solutions / storage as a services • Backup solutions / backup and restore as a service • Some data intensive workloads if the provider has a cloud storage offering tied to the cloud compute offering • Workloads which depend on sensitive data normally restricted to the enterprise • e.g. employee information, health care records • Workloads composed of multiple, co-dependent services • High throughput online transaction processing • Workloads requiring a high level of auditability, accountability • e.g. workloads subject to Sarbanes-Oxley • Workloads based on 3rd party software which does not have a virtualization or cloud aware licensing strategy • Workloads requiring detailed chargeback or utilization measurement as required for capacity planning or departmental level billing • Workloads requiring customization (e.g. customized SaaS)‏

14. Virtualize Elastic Scale Connect Secure DNA of an Enterprise Private Cloud Services consumed mostly by “controlled” clients Highly customized applications (homegrown and ISV) ApplicationServices Smart SOA Connectivity & composition of services Java based development and runtime tooling PlatformServices Elastic scaling via multi-tenacy Rapid & Dynamic provisioning Advanced virtualization InfrastructureServices Large Enterprise Customers are looking to leverage “private clouds” with advanced virtualization, automation and autonomics to reduce operational expense and energy consumption. Reducing the “time to value” of on-premise deployments and improving consumability especially for LOBs and B2B collaboration. GB/SMB customers (especially in Emerging Geos) are looking to leverage consumable services which require minimal up-front expense and skills and which provide only minimal customizations via REST based APIs and mash-ups. These services could be consumed from “private clouds” residing on the premise of their large enterprise partners.

15. DNA of an Enterprise Public Cloud Web 2.0 based applications with minimal customization Services consumable by open community of customers and ISVs ApplicationServices Mash-up based composition of services Script-language development and runtime tooling PlatformServices Elastic scaling via multi-tenancy InfrastructureServices Rapid provisioning Advanced virtualization Large Enterprise Customers are also looking to leverage “public clouds” to reduce costs associated with development/test, peek off-load, non-core (but value add) services, and even B2B collaboration. GB/SMB customers (especially in Emerging Geos) are looking to leverage consumable services which require minimal up-front expense and skills and which provide only minimal customizations via REST based APIs and mash-ups. These services could be consumed from “public clouds”.

16. Implement with the focus on the end user experience End Users Service Portal Service Request Catalog Provisioning Engine • Workflows • Expert Systems • Scripts Optional Service Modules • e.g. Metering/ Usage Billing, Monitoring, etc. • Easy to access, easy to use Service Request Catalog • Hides underlying complex infrastructure from user and shifts focus to services provided • Enables the ability to provide standardized and lower cost services • Facilitates a granular level of services metering and billing • Workload standardization eases complexity Virtualized Cloud Infrastructure

17. Lifecycle of a Cloud Service Service Subscription & Instantiation Service Operation Subscriber (e.g. Line of Business) Subscription & Instantiation Administrator / SLM Service Offering Creation & Registration Production Offering CloudService Service Catalog Manager Service Instance Termination Termination Definition Cloud Management Platform Common Resource Pools Subscriber (e.g. Line of Business) Service Template Definition IBM / ISV /IT Dept

18. The Common Cloud Platform Service Provider Service Request & Operations Service Creation End Users,Operators ServicePlanning Cloud Services Service Definition Tools Software Platform Services Infrastructure Services Application/Business, Process, Assembly and Information Services Role-basedAccess Standards Based Interfaces Cloud Management Platform Service Publishing Tools Service Catalog Business Support Systems (BSS) Service Delivery Platform “Operational Support Systems (OSS)” Service Reporting & Analytics Operational Console

19. Cloud ServiceDeveloper Cloud ServiceConsumer Virtualized Infrastructure – Server, Storage, Network, Facilities Business-Process-as-a-Service Software-as-a-Service Platform-as-a-Service Infrastructure-as-a-Service Service Development Portal API Service Delivery Portal The Common Cloud Platform – Detailed View Cloud Service Provider User Interface API Consumer End user Cloud Services Developer Partner Clouds Common Cloud Management Platform BSS Business Support Services Offering Mgmt Customer Mgmt Pricing & Rating Order Mgmt Entitlements Subscriber Mgmt Service Development Tools Consumer Business Manager Accounting & Billing Invoicing Peering & Settlement Contract Mgmt SLA Reporting Service Offering Catalog Service Definition Tools Metering, Analytics & Reporting Service Provider Portal OSS Operational Support Services Service Delivery Catalog Service Automation Management Customer In-house IT Service Templates Service Request Management Configuration Mgmt Image Lifecycle Management Provisioning IT Service Level Management Incident, Problem &Change Management IT Asset & License Management Capacity &Performance Management Monitoring &Event Management Virtualization Mgmt Image Creation Tools Consumer Administrator Service Operations Manager Service Business Manager Service Transition Manager Security & Resiliency Service Security Manager

20. Converged Platform for Cloud Computing End User Self-Service Provisioning Manager R E S T A P I Service Request Manager Service Automation Templates WEB 2.0 USER INTERFACE Tivoli Process Automation Engine Orchestration Workflows Cloud Administrator Image Management Reservation Data Models Provisioning Workflows Server Network Storage Application Cloud Portal for Storage, Test, Developer Clouds, etc. Platform, Hypervisor & Ensemble Management Operational Management Products ITM, ITUAM VMWare Virtual Center, XEN, KVN, p, z Virtualized Infrastructure & Hypervisors Server, Storage, Network

21. TSAM – ”The Big picture”

22. Cloud Service Definition (TSAM)

23. IBM Tivoli Service Automation Manager 7.2 – Features Supported Platforms / Management Software Managed environment: • VMware ESXI 3.5 • RHEL 5.3 • SLES 10.2 • CentOS 5.3 • All: 32 / 64 bit • XEN on RHEL • RHEL 5.3 • SLES 10.2 • CentOS 5.3 • All: 32 / 64 bit • KVM on RHEV-H 5.3 • RHEL 5.3 • 64 bit • PHYP (System p) • AIX 5.3, AIX 6.1 64 bit • z/VM 5.4 • RHEL 5.3 64 bit • SLES 10 64 bit • z/OS V1.8 and V1.9 operating system (with DB2 V9 software installed optionally) • WebSphere Application Server ND Version 6.1 • IBM Tivoli Monitoring V6.2 Fixpak 1 • OMEGAMON XE for zOS V4.1.0 • OMEGAMON XE for DB2/PE V4.1.0 Supported management server platforms: • Linux on System z: SuSE Linux (SLES) 10 • Enterprise Server 64 bit • IBM AIX 5.3 / 6.1 64 bit • Linux on x Series: SLES 10 64bit, • RedHat Enterprise Linux 5.3 64bit • Functional scope • Generic functionality • Base platform for dealing with service templates and service instances • Allow integration of manual steps into the execution of any management plan • Track task progress and email-based notification on completion of management plan execution • Logging of changes (“who changed what”) • Launchpad Based Installer • WebSphere & DB2 services (“Platform-as-a-Service”) • Customizable deployment & configuration of WAS ND services instances on zLinux and AIX • Management of WAS ND service instances on zLinux and AIX • Start/Stop WAS ND service instance • Terminate WAS ND service instance • Customizable, codified best practices for problem analysis and corrective actions (integration of ITM 6.x for monitoring WAS ND resources) • Integrated Monitoring of DB2 on z/OS • Co-existence with existing ITM 6.x installations • Single OS-image deployment & management (“Infrastructure-as-a-Service”) • Integration of SRM service catalog with enhanced End-User Interface • Self-service request for single virtual machine image • Create/Delete Virtual Server incl. reservation for CPU, memory, and disk size, create, delete(see supported platforms) • ITUAM integration • REST APIs (IBM internal use only)

24. IBM Tivoli Service Automation Manager 7.2 – Control Flow Script I/F Admin GUI TSRMGUI Dojo based TSRMApplication service catalogofferingservice request… Java I/F TivoliServiceAutomationManagerApplication service templateinstancestopology/nodesmgmt plans… widgets TPM 7.1.1 WorkflowsLDOsquery/set/.. DCM… DCM CMDB TPAE/Maximo GUI SRM Tivoli Service Automation Mgr TPM • Interaction with end user • Collect parameters for management plans • Prepare service request from given input parameters • Perform reservation of resources • Approval and notifications on business level • Topology definition • Orchestration by management plans • Management plan definition • Management plan execution- push down on eg. TPM (or Script) • Approval and notifications on technical level (admin) • Situation governance incl. error handling by admin • Work assignments on admin level (“inbox”) • Management plan fulfillment by executing TPM workflows/LDOs… or native scripts… or Java based actions… or manual tasks • Change resource state

25. Tivoli Service Automation Manager User Interface

26. IBM CloudBurst and WebSphere CloudBurst provide cloud management capabilities with different approaches

27. A service delivery platform that is pre-integrated at the factory. Built-for-purpose based on the architectural requirement of specific workloads. Delivered and supported as a single product. Prepackaged, pre-configured servers, storage, networking, software and installation services needed to stand up a private cloud. Cloud Software Configuration: Systems Director 6.1.1 with BOFM, AEM; ToolsCenter 1.0; DS Storage Manager for DS4000 v10.36; VMware VirtualCenter 2.5 U4; LSI SMI-S provider for DS3400 VMware ESXi 3.5 U4 hypervisor on all blades Tivoli Provisioning Manager v7.1 DB2 ESE 9.1; WAS ND 6.1.0.13; TDS 6.1.0.1 Special purpose customized portal and appliance wizard that enables client portal interaction Tivoli Monitoring v6.2.1, OS pack IBM CloudBurst at a Glance Installation & Configuration: • Deploy and integrate BladeCenter hardware in customer data center and network. • Configure local storage area network. • Configure users and security profiles. • Configuration and discovery of virtualized compute, network and storage resources. • Configure self- service portal. On site introductory training: • Overview and hands-on platform training including topics like: • BladeCenter, local SAN and network switch management. • Administrator and user level training. Base Hardware Configuration: • 1 42U rack. • 1 3650M2 Systems Management Server. • 1 HS22 cloud management blade. • 1 BladeCenter H chassis with redundant Ethernet and Fibre Channel switch modules. • 3 managed HS22 blades. • DS3400 FC attached storage.

28. cloudburst-tsam cloudburst-itm TSAM 7.2 TSRM 7.1.0.4 ITM 6.2.2 TEMS/TEPS TPM 7.1.1 DB2 9.5 WAS ND 6.1.0.23 ITDS 6.2 SUSE 10 SP2 DB2 9.5 SUSE 10 SP2 cloudburst-nfs cloudburst-tuam HTTP Server ITUAM 7.1.2 NFS Server DB2 9.5 SAMBA Server SUSE 10 SP2 SUSE 10 SP2 CloudBurst Management Virtual Machines cloudburst-ips IBM ISS IPSVirtual Appliance cloudburst-nfs-ha HTTP Server NFS Server SAMBA Server SUSE 10 SP2

29. CloudBurst in a cloud

30. Secure, self-service cloud management hardware appliance Unmatched WAS management (apply maintenance, federate cells, etc. - not black box) Dispenses hardened WAS patterns into a pool/cloud of virtualized hardware running a supported hypervisor e.g. VMware ESX or PowerVM. Enables consistent & repeatable deployment of application environments based on patterns Integrates with existing infrastructure through programmable REST APIs WebSphere CloudBurst Appliance

31. What’s new in WebSphere CloudBurst in 4Q09? • PowerVM supported as a deployment target • Same patterns can be used on X86 and PowerVM by simply selecting the appropriate virtual image • Test on X86, go live on PowerVM, use WebSphere CloudBurst to manage it all! • Export/Import virtual images and patterns • Enables artifacts to be created/configured once, and then shared amongst multiple WebSphere CloudBurst Appliances throughout the enterprise/globe • DB2 trial image preloaded on appliance • Integration w/ Tivoli Service Automation Manager (TSAM) & IBM CloudBurst • WebSphere CloudBurst can be managed and controlled by TSAM. • Customers who utilize TSAM for general purpose provisioning can integrate WebSphere CloudBurst into their existing framework for consistency

32. Strategic Direction: The IBM Cloud Public Cloud with multiple service “on-ramps” for clients, hosted in key centers worldwide Common infrastructure to provide computing and storage resources Common platform, BSS and OSS services to operate and manage Range of IBM and partner services Implementation and Hosting Services to build “Private Clouds” for SO data centers, other clients Develop & Test Software Development & Testing Desktop On-demand desktop & user support Applications On-demand applications (horizontal and vertical industry) Information Protection Backup / Recovery Service Collaboration eMail, Collaboration, Community Computing as a Service Storage as a Service Common Cloud Platform Platform Products Web Application Server, Database, Tools, Systems Management Operational Support Services Metering, Monitoring, Provisioning, Infrastructure Mgmt, Capacity Planning, Infrastructure Security Business Support Services Billing, Reporting, Contract Mgmt, SLA Mgmt, Order Mgmt, Account Mgmt

33. IBM’s View on Cloud Standards Since there is a diversity in the types of cloud platforms and models, open standards are a critical customer requirement IBM believes that the industry should align around a core set of principles. The most important of these principles are: Existing standards should be reused All standards efforts should be based on customer requirements Standards development efforts should stay coordinated IBM initiated a community based use case effort that collects customer requirements for an open cloud: First draft completed 8/2009. Broad industry participation/interest (1000 participants with 30+ contributors) Common API’s was a common theme for version 2 Version 3 is focused on Security and SLA’s IBM partners with Zend, Microsoft and others on common API’s for developers: SimpleCloudAPI.org A new open source initiative which enables developers to build truly portable cloud applications. We are working with standard orgs to drive standards in several key areas: Virtualization Security Common interfaces to ensure flexibility in moving applications and data (API’s) Tools and development languages Programming / Platform model / Data Integration Management and governance systems interfaces (API’s) Metering, monitoring, deployment, service lifecycle Network 34

34. Deployment Choices

35. IBM Cloud Computing Services Offerings A portfolio of leadership products and services for optimizing with cloud computing that continues to grow to support customers with cloud building and cloud delivered offerings. Cloud Consulting Cloud Implementation Cloud Delivered • Service Management for Cloud Computing • Test and Developer Cloud Services • Managed Security Services for Cloud Computing • End User Cloud Services • Scale out File Services • Infrastructure Consulting Services for Cloud Computing • Business Cloud Consulting Services • Security and Resiliency Consulting Services for Cloud • Resiliency Certification for Cloud Computing • LotusLive • Computing on Demand • BlueWorks • Information Protection Services • Managed Data Protection for desktops and laptops • IBM products on Amazon EC2

36. Software-as-a-Service – LotusLive family LotusLive Web Conferencing Collaboration eMail LotusLiveEvents LotusLive Engage LotusLiveNotes IBM's most widely used software, Lotus Notes is available as an online service. LotusLive Events is an online event management service, helping you create, host and manage your next online conference. LotusLive Engage is an integrated suite of tools that combines your network with Web conferencing and collaboration capabilities. LotusLive Meetings LotusLiveConnections LotusLiveiNotes LotusLive iNotes is a security-rich, Web-based messaging service for exchanging e-mail and files between individuals and extended communities. LotusLive Meetings is a full-featured online meeting service that integrates Web, audio and video conferencing. LotusLive Connections is an integrated suite of collaboration services that lets you store and share files, manage activities, conduct online chats, and extend your business contacts with networking capabilities.

37. IBM Computing on Demand (CoD) – Infrastructure-as-a-Service Computing on Demand Base Access Computing on Demand Capacity Models (Click to Enlarge in Screen Show) Computing on Demand Cloud Centers

38. Virtual Storage Cloud One Potential Configuration A multi-tenant, virtualized pool of data storage resources delivered over a network to local and remote compute resources. The business model supports a service catalog front-end and utility/metered billing based on consumption. Features

39. Desktop-as-a-Service Cloud Branch/Store Workers: • Highly secure access to Applications and client data • Increased Security by replacing fat clients with thin clients Knowledge Workers: • Replace thick clients with lower cost thin clients • Preserve thick client usability • Central management of all desktops Transaction Workers: • Deploy virtually any application • Flexible architecture to increase decrease number of seats DaaS Portal Public or Private Cloud Mobile Workers: • Secure access to applications from virtually any PC at any time • Highly secure access to enterprise resources and data • Rich client capability • Deploy virtually any application Developers: • Consolidate multiple developer desktops • Highly secure offshore development • Centrally manage developer desktop

40. System X RAD/RSA IBM Smart Business Development/Test Cloud A dynamically provisioned and scaled runtime environment that provides everything needed to develop and test application code External Cloud Portal RAD/RSA Client WebSphere DB2 WebSphere DB2 Linux Linux Developers Image Management Tools for the Cloud Tools in the Cloud • Tools to configure and manage the dynamic execution environment. • An IDE that facilitates the direct use of the execution environment. • Build and test tools that can exploit the execution environment • Centrally hosted application lifecycle management tools • Virtualized test and build resources Using ‘IBM Cloud’ compute and storage resources

41. Cloudburst Cloudburst Test Cloud Architecture Overview Workloads Test and Pre-Production Software Development TSAM Web 2.0 GUI TSAM TPM & TPC ITM & TUAM LDAP TSLA & TBSM Infrastruct. Planner Service Management Request UI Operations UI Service Catalog & Automation Provisioning Monitoring & Metering Security SLA Mgmt Capacity Planning Virtualization VirtualApplications & Middleware VirtualServers VirtualStorage VirtualNetworks VirtualClients Systems Director Virtualization Mgmt Image Mgmt Capacity Mgmt Physical Layer Non-IBM Servers System x, BladeCenter IBM & Other Storage IBM System z Power Systems Networking Products: TSAM: Tivoli Service Automation Manager, TPM: Tivoli Provisioning Manager, ITM: IBM Tivoli Monitoring, TUAM: Tivoli Usage and Accounting Manager, TPC: TotalStorage Productivity Center, TSLA: Tivoli Service Level Advisor, TBSM: Tivoli Business Service Manager.