Cloud Computing Overview

Cloud Computing Overview Wesley Kuch Business Development Executive IBM Cloud Computing weskuch@us.ibm.com

“Cloud” is anew consumption and delivery model inspired by consumer Internet services. Enabled byVirtualization, (Service) Automation, Standardization Cloud enables: Self-service Sourcing options Elasticity Rapid Provisioning Economies-of-scale Multiple Types of Clouds will co-exist: Private, Public and Hybrid Workloadand / or Programming Model Specific Cloud: Consumption & Delivery Models Optimized by Workload Cloud Services Cloud Computing Model

There is a spectrum of deployment options for cloud computing 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 Enterprise Users Enterprise Plus Enterprise data center Enterprise data center A B A B Managed private cloud Hosted private cloud Shared cloud services Public cloud services Private cloud Third-partyoperated Third-party hosted and operated Internal and external service delivery methods are integrated Hybrid

Cloud offers a choice of services to help businesses get what they want; quickly, easily and on a pay-as-you-go basis. Businesses are using cloud to rethink IT and reinvent business Traditional on-premises Infrastructure as a Service Platform as a Service Software as a Service Application Application Application Application Client Manages (Meta) Data (Meta) Data (Meta) Data (Meta) Data Client Manages Runtime Runtime Runtime Runtime Middleware Middleware Middleware Middleware Client Manages Operating system Operating system Operating system Operating system Vendor Manages in Cloud Vendor Manages in Cloud Virtualization Virtualization Virtualization Virtualization Servers Servers Servers Servers Vendor Manages in Cloud Storage Storage Storage Storage Networking Networking Networking Networking Customization; higher costs; slower time to value Standardization; lower costs; faster time to value

Workloads Matter: Cloud adoption driven by workloads Ready for cloud… New workloads made possible by cloud … Collaborative Care Medical Imaging Analytics Infrastructure Storage Financial Risk Industry Applications Information intensive Energy Management Isolated workloads Collaboration Sensitive Data Workplace, Desktop & Devices Mature workloads Highly customized Business Processes Not yet virtualized 3rd party SW Pre- production systems Disaster Recovery Complex processes & transactions Development & Test May not yet be ready for migration… Batch processing Infrastructure Compute Regulation sensitive Workload selection

To* Capabilities From Server and storage utilization 10-20 percent 70-90 percent Self service None Unlimited Test provisioning Weeks Minutes Shifting workloads to IBM SmartCloud Enterprise can help enable new opportunities and drive significant cost savings. Change management Months Days or hours Deployment process Labor intensive Automated Cost model Nearly fixed By the hour Standardization Complex Self service Payback period for new services Years Months Cloud server environments Legacy server environments The cloud can help accelerate business value and enable new business opportunities. *Based on results from IBM’s Technology Adoption Program. Client-specific results can only be ascertained after a return on investment analysis.

How does Cloud Work? Prepared by Global Technology Services Cloud Manage Services

Customer account managers create users, control user access to the account and set permission levels.

Monitor, manage and control through the Web Portal Control tab • Instance • Images • Storage Account tab • Managing Users • Usage overview • Access keys • IP addresses Support tab • Forums • Video & Document libraries

Virtual machine (VM) • Options • 32-bit configurations • 64-bit configurations • Copper • Bronze • Silver • Gold • Copper • Bronze • Silver • Gold • Platinum • Virtual CPUs • with 1.25 Gigahertz • 1 • 1 • 2 • 4 • 2 • 2 • 4 • 8 • 16 • Virtual memory (GB) • 2 • 2 • 4 • 4 • 4 • 4 • 8 • 16 • 16 • Instance storage (GB) • 60 • 60+175 • 60+350 • 60+350 • 60 • 60+850 • 60+1024 • 60+1024 • 60+2048 Nine standard server and storage options are available for user accounts • Intel architecture servers can be provisioned with Linux (Red Hat, Novell SUSE or customer provided) or Microsoft Windows Server (2003 or 2008) and your choice of middleware. • Prices start well under 10 cents per hour* for a virtual machine, including operating system. Reserved capacity options provide pools of resources at discounted rates. • Dynamically attach and detach up to three extra blocks of persistent (RAID protected) storage to an instance, preformatted (ext3) or raw in eight sizes from 60 GB to 10 TB. *US prices for 32-bit copper configuration with Windows Server or SUSE Enterprise Linux, current as of December 5 2011. Prices subject to change.

Customize standard instance Your fully configured instance(s) Standard instance Add software bundles (optional) * * Provisioned instances Available images Create instance from a standard PUBLIC image Save image to your PRIVATE catalog Create instances from your PRIVATE image Images in a PRIVATE Catalog can be copied to a SHARED catalog, accessible to other users on the account. The entire process can be driven and monitored from the cloud portal control panel or controlled using a scripted programming interface. IBM PUBLIC image Catalog ’My Images’ PRIVATE Catalog** Working with virtual machine instances and software images *Choose ”minimal storage” and experience even shorter provisioning times. **Storage space used by private images is charged for at persistent storage rates

Click and choose the service you need Choose the hardware and usage configuration Application provisioned and ready to run Step 1 Step 2 Step 3 Users can have a server environment up and running in minutes on the Cloud (4-Clicks!) The self-service portal, designed for ease of use, guides you through setting up what you need and triggers the automated provisioning of your servers. An interactive simulation of the user experience is available here.

You can provision resources from several Cloud Delivery Centers RTP (OSS/BSS) OSS (POD) Ehningen, Germany Toronto, ON Boulder. CO User Makuhari, Japan Raleigh, NC User front-end to Business and Operational Support Systems (BSS/OSS) Singapore Point of delivery (POD) minimum configuration

IBM Cloud Managed Services (SCE, SCE+, SCE+ w/Applications) Prepared by Global Technology Services Cloud Manage Services

The IBM SmartCloud Framework is the base for our solutions. Business Process as a Service Software as a Service Platform as a Service Infrastructure as a Service Design Consume Deploy Cloud Enablement Technologies Cloud Business Solutions Managed Cloud Services Enables private/hybrid cloud service delivery and management Secure and scalable cloud managed services platform Pre-built Cloud SaaS business applications and solutions Proven Strategy Consulting, Migration, & Management Expertise Common Open Standards Technology and Industry Ecosystem

IBM SmartCloud Enterprise Platform Stack • App administration and availability • Application db administration • System performance tuning • Job scheduling ApplicationsAdministration • 24x7 service desk • Monitoring and SLA reporting • Service request management Database Management Operations Services • System and OS maintenance • System and OS changes • Capacity management Systems Administration SmartCloud For Applications Data Availability Services Enterprise+ • Storage administration • Hardware availability and fail over • Backup/restore/diagnostics Security Services Network Services • Perimeter and network security • Server host security • Hardware and systems software assets Computing Infrastructure Enterprise • Network services • Network maintenance and change • Equipment configuration management • Network fail over Data Center & Network

Internet Global data centers • Enterprise-class shared cloud infrastructure • Highly virtualized, automated and standardized multitenant IT infrastructure with massive capacity and global reach • Provides virtual servers and storage in minutes • Pay-per-use with no up-front investment • Resources billed per hour of usage, including selected software, with no capital expense or long-term commitments required • A flexible and feature-rich services platform • Flexibility and features to support a myriad of workloads. • An automated platform on which enterprises and their partners can base higher level services • IBM owned and operated • Built to meet enterprise security, reliability and control requirements for on-demand IT resources Serving your end users, IT professionals and partners. IBM SmartCloud Enterprise Shared Infrastructure as a Service (Pay-as-you-Go Cloud)

Virtual Machine Capacity Options Service Category Software Image Managed Services Capacity (server / storage) + + +

Service Level Package Options Service Category Software Image Managed Services Capacity (server / storage) + + +

Operating System and Software Images Service Category Software Image Managed Services Capacity (server / storage) + + + • Operating System • x86 (VMware ESXi 4.1) • Red Hat Enterprise Linux 5.4 & 5.6 (32 and 64-bit) • Windows Server 2003 R2 Standard Edition (32 and 64 bit) • Windows Server 2008 R2 Standard Edition (64-bit) • pSeries (IBM PowerVM) - IBM AIX Standard Edition Version 6.1 • IBM and non-IBM software: • Apache Tomcat V5.5 • Oracle Weblogic V10.3 • Apache HTTP V2.2 • Microsoft .Net 3.5 • MS SQL Server • Oracle 10.2 • Oracle DB 11g EE • IBM DB2 EE V9.7 • IBM Websphere MQ V7.0 • MS Internet Information Server

Managed Services (Base) • Systems Management • Monitoring of OS Components • Patch Management(Auto, Manual, Do not Patch options) • Anti-Virus on Windows OS • OS License Management • OS Level Security and Compliance • Security Policy Management • Security Compliance Support • Audit Support Management • Regulatory Program Management • ITIL based Managed Services • Service Catalogue • Service Request or Activation and Deactivation (SA&D) • Incident, Problem and Change Management (with add-on support for Integration Services) • Event Management • Configuration Management • Asset Management

Optional Managed Services – Above the Hypervisor Management • Operating Systems Monitoring and Management • Monitoring of OS Components • Patch Management • Anti-Virus on Windows OS • OS License Management • OS Level Security and Compliance • Security Policy Management • Security Compliance Support • Audit Support Management • Regulatory Program Management • ITIL based Managed Services • Service Catalogue • Service Request or Activation and Deactivation (SA&D) • Incident, Problem and Change Management (with support for Integration Services) • Event Management • Configuration Management • Asset Management

SCE | NA IOT | Government I Reference Cloud in Action: City of South Bend Revamping public utilities through SmartCloud technology Benefits: The need: The solution: Benefits: • The utility, like many, struggled with an aging and inefficient sewer infrastructure. Lacking a holistic view into the health of the system, crews found it difficult to quickly locate and resolve issues, such as a clogged pipe. • During severe rainstorms—and sometimes even during dry weather—the system was unable to handle large volumes rainwater and wastewater, causing raw sewage to be released directly into the local river. • EPA is enforcing the Clean Water Act in 800 CSO communities including South Bend. The utility was averaging 54 overflow events annually, discharge levels had reached nearly two billion gallons per year and the city was facing half a billion dollars’ worth of infrastructure changes. • Cuts wet weather overflows by 23 percent and dry weather overflows from 27 per year to one • Adds 10 million gallons of capacity to the wastewater system • Avoids spending over USD100 million in infrastructure investments, plus more than USD660,000 in potential government fines • Waterways will be cleaner and neighborhoods healthier as customers will experience fewer backups in their basements. • Service delivery platform based on IBM SmartCloud Enterprise • IBM Intelligent Operations Center, working with IBM Business Partner EmNet LLC, is the central point of command. The network collects, analyzes and monitors live data from sensors, level indicators and SCADA of the sewer system, and also helps control wet weather flow through the remote use of wireless rain gauges, sewer level sensors and smart valves. • The solution also takes advantage of ArcGIS Server software from IBM Business Partner Esri to manage geographic data and generate maps . • Deeper customer relationships through tailored content and new value-added services • Flexible pricing model that scales as the business grows, while maximizing profit. • Management of millions of connected consumer devices “We started to talk to IBM as a partner....we did real time monitoring, real time control of that sewer system. We are able to dynamically change how the system can store and move wastewater during each unique storm that comes across our 40 square miles of city and visualize a lot of data as useful decision support information at a glance.“ - Gary Gilot , President, Board of Public Works, City of South Bend, IN CRDB Link to Client Reference Client Video

Private Cloud JourneyCloud On-Premise & behind your Firewall

The Journey from Traditional Environments to Cloud Can be in One Step or an Evolution Clients make workload-driven trade offs among functions such as security, degree of customization, control and economics CLOUD Dynamic provisioning for workloads SHARED RESOURCES Common workload profiles AUTOMATE Flexible delivery & Self Service Integrate with existing infrastructure STANDARDIZE Operational Efficiency Ready the Infrastructure VIRTUALIZE Increase Utilization Where are you in this continuum? CONSOLIDATE Physical Infrastructure Traditional IT Standard Managed ServicesCloud Delivered Services

IBM PureFlex: Integrated Infrastructure for Private Cloud • Single point of management control for resource virtualization / systems management • Infrastructure-as-a-Service (IaaS) • SmartCloud entry (private cloud) • End-to-End Life-Cycle Support • Single point of Contact • Best industry services organization and Certified Business Partner Network • x86 & POWER7+ • Higher VM density, more Memory • Designed to support the growth of future generations • Integrated, scalable, 3rd party storage virtualization • Real-time Compression, Tiering, Pooling • Choice of Networking: IBM, Cisco, Juniper & Brocade, across multiple protocols • Industry standard OpenFlow, 802.1 Qbg • Uncompromised I/O: 40Gb Ethernet, 16Gb Fibre Channel, and 56Gb Infiniband • Open Choice for compute, network, storage, OS and Hypervisors • Desktop Virtualization: VirtualBridges, Citrix, VMware and ISV solutions 26

Support an Evolutionary Approach • Offers a range of entry points, control and integrated value • Supports existing and new infrastructure investments • Delivers application & middleware pattern portability Legend SmartCloud Foundation Offering Factory Integrated & Optimized by IBM SmartCloud Orchestration Orchestrate Services across multiple environments and domains PureApplication System SmartCloud Provisioning Automate Optimized Workloads SmartCloud Provisioning Automate Optimized Workloads Automate Optimized Workloads Automate IT Delivery SmartCloud Entry Automate IT Delivery SmartCloud Entry Automate IT Delivery PureFlex System Customer integratedhardware CIMI & OVF TOSCA CCRA OSLC

What is OpenStack? OpenStack is a global collaboration of developers and cloud computing technologists that seek to produce a ubiquitous Infrastructure as a Service (IaaS) open source cloud computing platform for public and private clouds. OpenStack was founded by Rackspace Hosting and NASA jointly in July 2010. 160 companies and close to 3,000 developers. http://openstack.org/ • OpenStack Compute (core)Provision and manage large networks of virtual machines • OpenStack Object Store (core)Create petabytes of secure, reliable storage using standard hardware • OpenStack Image Service (core)Catalog and manage massive libraries of server images • OpenStack Identity (core)Unified authentication across all OpenStack projects and integrates with existing authentication systems. • OpenStack Dashboard (core)Enables administrators and users to access & provision cloud-based resources through a self-service portal. • Code available under Apache 2.0 licenseDesign tenets – scale & elasticity, share nothing & distribute everything

Key Capabilities: SmartCloud Entry AUTOMATE Existing Capabilities: • Intuitive end-user Web portal for VM provisioning • Provision through VMware & VMControl on Power • Simplified Cloud administration inc. project construct • Built-in resource usage metering and simple billing • Simple, yet configurable approval/denial process • Deploy on diverse IBM servers with optimization Benefits: • Time to market - Demonstrated 35x improvement for deploying new applications • Transform virtualized platforms into private clouds in minutes • Architecture supports multiple platforms enabling clients to use same self service provisioning portal to create workloads independent of platform • Platform choice - spans multiple hypervisors and hardware platforms, allowing changes without disruption to the user New Capabilities: • Image creation, management and manipulation • Deploy to KVM, Xen, Hyper-V based infrastructure • Deploy on industry x86 platforms providing choice • Provision direct to the hypervisor for best scalability • Build and/or capture single images • Improved multi-tenant security protection 29

Key Capabilities: SmartCloud Provisioning OPTIMIZE Includes SmartCloud Entry (sample capabilities): • Simplified Cloud administration inc. project construct • Built-in resource usage metering and simple billing • Simple, yet configurable approval/denial process Existing Capabilities: • Simple GUI based Image construction & composition • Virtual image library, search, rich analytics, image versioning • Multiple hypervisor support (ESXi, KVM, and Xen) on heterogeneous platforms • Reliable, fault tolerant cloud • Rapid scalable deployment • Low touch automation, self service UI New Capabilities: • Drag & Drop graphical tool for pattern composition • Standardized virtual systems • Deploy patterns of composite infrastructure and platform topologies • Additional hypervisor support for PowerVM , HyperV, z/VM Benefits: • 70% reduction in image provisioning time with automated image lifecycle management • 40% - 80% labor cost reduction by increasing image/admin ratio efficiency • Reduce complexity bymanaging image sprawl with health visibility and image analytics • Speed time to market for applications with pattern-based workload design and deployment 30

Key Capabilities: SmartCloud Orchestration ORCHESTRATE Includes SmartCloud Provisioning (sample capabilities): • Deploy patterns of composite infrastructure, platform and software as a service • Simple GUI based Image construction & composition • Virtual image library, search, rich analytics, image versioning Existing Capabilities in TSAM / ISDM: • Service catalog for pre-defined, standardized IT service deployments • Enabled for multi-tenancy with onboarding process • Hybrid integration for multiple public cloud environments • Cloud health, monitor performance, what-if analytics and capacity management with increased visibility • Integrated, extensible and comprehensive Usage and accounting tracking for chargeback capabilities New Capabilities: • Simple composition of Run Books automation for extending pattern deployment and lifecycle processes with custom management processes • Reusable Run Book libraries to speed automation of IT processes Benefits: • 40% - 60% reduction of admin costs, through extensive automation of service delivery • Achieve standardization of services, resulting in 50% manual labor reduction • Business Agility: end to end automation allow business to react to ever changing market conditions • Choice of services through standards based hybrid connectivity • Flexibility though easy adaptation to existing processes and tools 31

Questions? www.ibm.com/smartcloud

Cloud Exploration Workshop • What it is: • A technique to assess Cloud capabilities against a set of characteristics • Identify specific IT capabilities to be adopted to support Cloud • Provide roadmaps to achieve selected IT capabilities based upon industry best practices and IBM Customer experiences • What it entails: • 1/2 day of exploratory on-site workshop • Examination of current IT capabilities relative to Cloud • What is produced: • Assessment of current IT environment • Observations and recommendations • Customized Cloud roadmaps • Candidate initiatives/projects

Virtual machine instance prices *U.S. prices current as of November 2, 2010. Subject to change. See Cloud Agreement and current Charges Schedule on SalesOne

University of Pennsylvania Medicine Clinical Research Cloud Business Background Solution Overview • IBM Tivoli Service Automation Manager • IBM Tivoli Usage and Accounting Manager • IBM Tivoli Access Manager • IBM Tivoli Identity Manager • IBM Tivoli Monitoring • IBM WebSphere Portal • Virtual Bridges – Verde (Virtual Desktop) • IBM hardware – xSeries BladeCenter, XIV Storage • Support for VMware and KVM hypervisors • Common service automation manager (TSAM) for both VDI and Server based resources • The University of Pennsylvania School of Medicine’s Clinical Research Computing Unit is developing a Cloud infrastructure to support secure virtual desktop and compute needs for internal and external investigators. Business Benefit • Provide investigators with a standard virtual desktop environment that supports secure access to research data. • Cost effective solution provides greater desktop hardware density and standardization. • Compliance to applicable regulatory policies including: HIPPA, GINA, CMS, FISMA, FDA, and VA • Self service registration for access management and integrated identity management across desktop and server infrastructure • Provide detailed usage and accounting to support chargeback to research projects

The SmartCloud Enterprise+ environment is supported by a comprehensive set of managed services and tools.

Our SmartCloud Enterprise+ environment adopts IBM best-of-breed security controls to help provide security across the managed layer. ISeC security controls Automated patch management Secure SA&D Managed layer security Antivirus (Windows) IBM ERS1 These include: • International Organization for Standardization (ISO) and International Electrotechnical Commission (IEC) 27001/2-based information security (ISeC) agreements that support industry and regulatory requirements • Hardened operating system (OS) images, regularly validated to ISeC controls with optional host-based intrusion detection system (HIDS) and host-based intrusion prevention system (HIPS) • Middleware configured in a security rich manner, based on ISeC specifications • Automated validation of ISeC security controls • Automated processes for Service Activation and Deactivation (SA&D) and patch management • Standard identity federation methods to support existing enterprise directory 1Internet Emergency Response Service (ERS)

Networking Features LAN • Redundant 10Gbps LAN Infrastructure based on Juniper Switch technology • 3 virtual NICs: customer, IBM admin, and backup • Customer network traffic segmented using secure VLANs • Multiple VLANs per client account • Managed customer facing software firewall • Software load balancer WAN • Optional VPN over Internet and/or Site-to-Site VPN • Internet connectivity with NAT to customer VLANS • Dedicated network connectivity

Cloud Computing Overview