cloud computing in practice
Post on 07-Aug-2015
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© IBM Corporation 1
Presented by:
It’s all about CloudCloud Computing in Practice
Andrzej OsmakCloud Delivery Architect, IBM
© IBM Corporation 2© IBM Corporation 2
Frontline decision making
New mobile apps are consolidating decision making at the fingertips of people who need to act
Disruptors are reinventing business processes and leading their industries with digital transformations
Real time insight driven processes
Insight from nontraditionaldata sources is being infused in business processes to create new business moments
Digital Innovation
New innovations are composed leveraging digital services from a broad ecosystem
© IBM Corporation 3© IBM Corporation 3
Will you disrupt or be disrupted by your industry?
Bringing insight directly to their maintenance engineers via
mobile
Using weather data to predict real time inventory needs
Sourcing new innovation from mobile developer
communities
© IBM Corporation 44© IBM Corporation
Digital transformations require hybrid cloud
Everything you will need won’t be in one place in the digital world. Data and services from multiple sources and
environments Mobile and other models of engagement driven through
clouds Innovation fueled by communities of developers and
experts
© IBM Corporation 5© IBM Corporation 5
Hybrid cloud has some fundamental elements
Hybrid cloud:connection of one or more clouds to traditional systems and/or connection of one or more clouds to other cloudsCloud Business Apps
Quickly address front and back office needs with access to a broad set of software-as-a-service offerings
Digital Innovation PlatformOpen standards-based cloud platform for building, running, and managing cloud and mobile apps
World Class Cloud InfrastructureMaximize and extend existing IT to cloud andconnect to enterprise grade cloud infrastructure worldwide
© IBM Corporation 6© IBM Corporation 6
The new hybrid cloud transforms roles across the organization
IT leaders advance change
Developers are empowered
Business leaders innovate
© IBM Corporation 7
IT needs a mix of deployment models and enterprise grade world class infrastructure
World Class Cloud Infrastructure
40 global cloud centersSecure integration to on-premises systems
Open, secure, and scalable Global cloud footprint Secure, high-speed network Expert services and tools
© IBM Corporation 8
Developers need a digital innovation platform to rapidly bring new products and services to market
Digital Innovation Platform
Extend existing IT investments into cloud business and delivery models
Enable seamless delivery with full DevOps and app lifecycle management
Use any combination of public, dedicated and local development and deployment
Bluemix provides expertise and services across market leading categories:
SecurityDatabaseCloud Integration
Business AnalyticsWeb and applicationInternet of Things
DevOpsPortabilityMobile
© IBM Corporation 9
Leaders need access to cloud business apps in their hybrid cloud to drive competitive advantage
Software-as-a-Service (SaaS)
Accelerate business innovation Engage and collaborate Connect business processes fueled by powerful
analytics
100+ IBM SaaS offerings aligned to business and IT
Watson Analytics
IBM Verse Kenexa Talent Suite
© IBM Corporation 10© IBM Corporation 10
But moving to a hybrid cloud introduces challenges
Business processes and transactions span multiple environments creating new risk for security, visibility and control at each touch point
Maximizing flexibility for the future to use any data, apps, services, and mobile devices as needs change going forward
Fast, secure access to only the datayour app needs identifying, integrating, and analyzing the right data from the vast types and volumes available
© IBM Corporation 11
Hybrid Cloud Roadmap
Prepare for implementation
Develop cloud business case
Determine cloud Deploymentoptions
Identify and prioritize workloads
Create cloud strategy, architecture and plans
1 2 3 4 5
Goals: accelerated migration, quick wins and mitigated risks
© IBM Corporation 12
Cloud strategy comprises four elements
BUSINESS MODELS ENABLED BY CLOUD
APPLICATION AND DELIVERY PLATFORMS
DATA PLATFORMSINFRASTRUCTURE
PLATFORMS
Enterprise Cloud
Strategy
1 2 3 4 5
Strategy
© IBM Corporation 13
Cloud Adoption Patterns
Ent
erpr
ise
Clo
ud A
dopt
ion
Workload Migration
Cloud First
MigrateQuantifyPrioritizeSelect
Workload analysis Wave 1 Wave 2 Wave 3
Migration Plan
Business case
New project
Replace existing app / infra
New project
Evaluate a blend of cloud options that best suit the project
requirements
BPaaS SaaS
PaaS IaaS
1 2 3 4 5
Prioritization
© IBM Corporation 14
Example: Typical Banking System Components
Strategy & Insight
Strategy & Governance
Business Strategy & Resource Planning
Business & IT Architecture
Acquisition & Alliance Planning
Strategic Change
Governance
Public Relations
Market InsightMarket
Research
Segment Analysis
Customer Insight
Customer Analysis &
Models
Customer Profile
Contact / Event History
Risk & Financial
Management
RiskRisk Portfolio Management
Lending Policy & Planning
Asset / Liability Policy & Planning
Compliance
Audit/QA/Legal
Business Policies &
Procedures
Finance
Financial Control &
Consolidation
Performance Management &
Reporting
Finance Policies
Fixed Asset Register
Accounting / GL
Treasury
Front office and Channel ManagementManagement
Relationship Oversight & Management
Channel Operations
Distribution Planning
Distribution Performance Management
Sales & Servicing
Customer Information
Management
Routing & Tracking
Sales
Servicing
Transaction Capture Services
Distribution Support
Deal Structuring (Securitization /
Syndication)
Trading
Correspondent Banking
Customer Probity Check
Brand & Product Management
Marketing
Brand & Segment
Management Proposition Development
Campaign Management
Campaign Execution
Product Factory
Product Development
Channel Planning & Development
Product Catalogue
Product Operations Planning &
Development
Processing / Back office
CommonApplication Processing
Statements & Correspondence
Market Info
Document Management
ProductAccounting
Ops Mgmnt
Customer Fulf ilment
Underlying Asset Procurement & Management
Complaint & Exception Handling
Customer Maint
Collections & recovery
Transactions
Transaction Execution
Reconciliation
Transaction Authorization
Cheque Processing
Payments
Cash Inventory
Billing Fraud / AML Detection
SpecificCard
ProcessingCustody &
Other specif ic processingMerchant
Operations Trade Finance specif ic
ProcessingTreasury
back off ice
Clearing & Settlement
Cash Managmnt
Support Services
SystemsDevelopment &
Operations
Helpdesk Services
Human Resource
Management
Facilities Operation & Maintenance
Procurement
... cloud readiness assessment shows 35% of existing workloads can be moved to cloud
Campaign Management
Cloudable = yes, 100%
Cost savings 30% to 80%
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Prioritization
© IBM Corporation 15
Public vs Private vs Hybrid
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Value drivers:• Customization• Efficiency• Availability• Resiliency• Security and Privacy
Value drivers:• Standardization• Capital preservation• Flexibility• Time to deploy
Value drivers:• Best of Both Worlds• Data security• Governance• Compliance and
budgetary challenges
Deployment options
Private Cloud Hybrid Cloud Off-premises Cloud
© IBM Corporation 16
Example: IT Cost reduction for Global Trade Provider
1 2 3 4 5
Business Case
Source: Case Study on Cloud Implementation for a Global Trade Provider, http://www.slideshare.net/msitpro/tradefacilitate-cs-unlocked
Upfront Capital Expenses No Longer Incurred
$5341 per
server (CAPX)
$107 per month
(OPEX)
Traditional Funding
Cloud Funding
High capital expense replaced by modest operational expense, which is easier to budget for and manage
Rapid Scalability at less cost
97%Reduction in the deployment time
Growing customer
base
• Purchasing and managing additional servers replaced by addition of web roles
• Saved One-third of the cost of adding an additional server every 3 years
Reduced IT spending on basic infrastructure leaves more time & budget to focus on strategic initiatives & growing customer needs
© IBM Corporation 17
Example: Private Cloud for Banking Client
Current status
Year 1 Year 2 Year 3 Year 4 Year 50%
25%
50%
75%
100%
0%
25%
50%
75%
100%
0%30%
80% 80% 80% 80%
OSI Opex profile
Capex
Opex
Opex im-provementC
ap
ex
/ O
pe
x%
A. Impact on spend
B. Impact on Opex profile
Based on agreed workload transition plan
Source: The above is based on actual business case developed for an IBM banking client and is used here as a representative example. Actual results for other banks will vary
Year 1 Year 2 Year 3 Year 4 Year 5 -
5
10
15
20
0%
25%
50%
75%
100%
13%47% 49% 48% 47%
Cost comparison chart (including 10% YoY increase in OSI images)
Traditional computing
Private cloud costs
% reductionCo
st
in U
SD
mn
~50% savings from year 2 can be used for strategic initiatives
Mission crit-ical; 1%
Business important;
16%
De-vel-op-
ment &
Test; 21%
Utility; 61%
Bank’s total Operating System Image (OSI) requirements
1 2 3 4 5
Business Case
© IBM Corporation 18
Example: Cloud-based Analytics
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Business Case
Effectiveness – 20% increase in conversion rates for marketing campaigns expected
Customer satisfaction – Improves satisfaction by providing customers with a more personalized and relevant experience
Efficiency – Increases efficiency of marketing operations by significantly shortening the marketing campaign cycle
CHALLENGEWhen this bank saw deeper customer engagement as essential to its growth and profitability, it knew that having solid, data-driven insights on customer behavior and preferences was the foundation. The real key, it recognized, was to infuse these insights into customer touch points such as outbound campaigns and inbound calls.
This bank in Japan operates nearly 200 branches in Japan and other areas in Asia
SOLUTIONThe bank is using cloud-based behavioral modeling to find service propensity patterns across its customer segments. And it’s incorporating those insights directly into its campaign management and inbound customer interactions to deliver a more personalized experience across all channels.
© IBM Corporation 19
Example: Cloud-based Storage
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What if you could put your cable subscribers’ DVR storage in the cloud?
DVR in the cloud is going to change the face of media, entertainment and advertising. Not only is it more convenient for subscribers, it delivers a better service. The cable company is going to know so much more about its subscribers, it will be able to virtually tailor the individual experience for each subscriber.
Real Business Results Reduced the costs of deploying and maintaining
set-top boxes by 50 percent, saving more than USD 6 million annually
Generated more than USD 8 million in new revenue from enhanced DVR services
Increased advertising reach by 12 percent
A cloud-based DVR service transforms how a cable company operates, gives unprecedented insights into viewing habits, and offers consumers greater control over their television experience.
A cable television company in North America
Cloud business case
© IBM Corporation 20
Security, Privacy and Compliance
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As companies start planning to adopt cloud, key questions come up about their data & applications:
Where is our data stored? What about data sovereignty?
How do we protect our customers’ privacy?
How does cloud affect our regulatory compliance?
Is a business continuity plan available for cloud?
Risk Management
Plan
Cloud SLA
Cloud requirements
Monitoring & Auditing
Risk & Security Management
processes
Physical & Logical controls implementation
Audits & reports
Critical elements to address security, privacy and compliance concerns
SE
RV
ICE
C
ON
SU
ME
RC
LO
UD
SE
RV
ICE
P
RO
VID
ER
Implementation
IT Strategy
© IBM Corporation 21
New Operating Model
An Operating Model is a framework for formulating an operations strategy
Market shifts necessitate most industries to adopt CAMSS
To succeed organizations have to assess the impact and determine actions
ROADMAP FOR CHANGE
Target Operating Model
BUSINESS GOALS AND STRATEGY
TOM
CustomerExperience
PerformanceMetrics
Technology
Skills & Capabilities
Sourcing & Alliances
Assets &Locations
Organization &Governance
Processes
1 2 3 4 5
Implementation
CULTURE
Additional Resources:
Cloud Maturity Tool
http://benchmark.cloudcurve.eiu.com/
Read the research for more insights
http://www.ibm.com/cloud-computing/us/en/cloudmaturity.html
© IBM Corporation 22© IBM Corporation 22
Summary Understand Digital Transformations
Be Disruptor rather than be Disrupted
Prepare and Execute Hybrid Cloud Roadmap
© IBM Corporation 23© IBM Corporation 23
Thank You
Contact:
Andrzej OsmakIBM Cloud Delivery Architectandrzej.osmak@pl.ibm.compl.linkedin.com/in/andrzejosmakTwitter: @aosmak
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