©2010IBMCorporationCloud©2010BMCorporation2AgendaWhatisCloud?1WhatistheBenefittoBusiness?2HowCanitbeUsed?3HowCanIBMHelp?4NextSteps?5©2010BMCorporation3ThereisgreaterneedforITtohelpaddressbusinesschallengesReducingRiskEnsuretherightlevelsofsecurityandresiliencyacrossallbusinessdataandprocessesBreakthroughAgilityIncreaseabilitytoquicklydelivernewservicestocapitalizeonopportunitieswhilecontainingcostsandmanagingriskHigherQualityServicesImprovequalityofservicesanddelivernewservicesthathelpthebusinessgrowandreducecostsDoingMorewithLessReducecapitalexpendituresandoperationalexpenses©2010BMCorporation4CloudComputing-StrategicViewIBMConfidential4Auserexperience&businessmodel•Standardized,selfserviceofferings•Rapidlyprovisionedservices•FlexiblypricedCloudcomputingistheprovisionofdynamicallyscalableandoftenvirtualisedresourcesasaserviceovertheinternet(publiccloud)orintranet(privatecloud).Aninfrastructuremanagementandservicesdeliverymethod•Virtualizedresources•Managedasasinglelargeresource•DeliveredserviceswithelasticscalingBusinessPerspectiveITPerspective©2010BMCorporation5CloudisdrivingbusinessinnovationwithconvergenceofavailabletechnologiesConvergenceofavailabletechnologies,ademandingmarketplaceandashiftinsocietalexpectationsAnExamplefromtheBankingIndustry…©2010BMCorporation6AgendaWhatisCloud?1WhatistheBenefittoBusiness?2HowCanitbeUsed?3HowCanIBMHelp?4NextSteps?5©2010BMCorporation7CloudComputingprovidesbenefitsacrosstheenterpriseITAnalystsFinancialAnalystsITCustomersEndUsersCommonAttributesofCloudsEnhanceduserexperienceElasticscalingAutomatedprovisioningHighlyvirtualizedSource:IBMCorporateStrategyanalysisofMI,PR,ARandVCGcompilationsAnywhereaccesstoapplicationsthroughasimplifieduserinterfaceRapidtimetomarketfornewservices.AnywhereaccesstoapplicationsthroughasimplifieduserinterfaceAbilitytoelasticallyscaleresourcesandmaintainhighqualityofserviceAbilitytoelasticallyscaleresourcesatsignificantlylowerincrementalmanagementcost©2010BMCorporation8WhytheC-SuiteisinterestedinCloudComputingCloudComputingisakeycatalystforthesechanges•Flexible,adaptable,extendablesystems•Reliability•Useradoption&empowermentCIO•Improvedgrowth&profitability•Governance,risk&compliance•Transparency,visibility&controlCFO•Faster,broader,moreuncertainchange•Innovationforcompetitiveadvantage•StrategicalignmentCEOTheabilitytoadaptabusinessmodeltomeetnewexpectationsandcapturenewshortlivedrevenuestreams,requireshighlyflexiblecoreprocessesandITinfrastructurethatcanturnonadime–©2010BMCorporation9AccelerateinnovationprojectsthatcanleadtonewrevenueMakeITanenablerof,notabarriertorapidinnovationProvideaneffectiveandcreativeservicedeliverymodelDeliverservicesinalesscostlyandhigherqualitybusinessmodel,whileprovidingserviceaccessubiquityCreateasustainablecompetitivedifferentiationRapidlydeployapplicationsovertheinternetandleveragenewtechnologiestodeliverserviceswhen,whereandhowyourclientswantthem-beforeyourcompetitorsdo.LowerITbarrierstolaunchnewbusinessservicesBuildandintegratemodularservices–inrecordtime-byleveraging“rentable”ITservicescapabilities,payonlyforwhatyouuse.ResultinginBusinessandITalignedbenefits©2010BMCorporation10CloudcomputingdrivesexponentialimprovementsacrossITandtheBusiness10VIRTUALIZATIONAUTOMATIONSTANDARDIZATIONCloudattributesFromServer/storagevirtualization10–20%Utilizationofinfrastructure10–20%Self-serviceNoneAutomatedprovisioningMonthsChangeandreleasemanagementMonthsServicecatalogorderingMonthsMetering/billingFixedcostmodelPaybackperiodfornewservicesYearsLegacyenvironmentsCloud-enabledenterpriseCloudacceleratesbusinessvalueacrossawidevarietyofdomainsTo70–90%70–90%UnlimitedDays/hoursMinutesDays/hoursGranularMonths©2010BMCorporation1111PrivateTestCloudROIAnalysisExampleInternationalFinancialInstitutionSavingbyCategory1stYearAfterCloudTransformationHardwareCost12%SoftwareCost3%Sys.Admin.Cost30%ProvisioningCost38%TestingProcessOverhead17%CostStructureWithandWithoutCloudTransformationWithoutWithCurrentYear1Year2Year3Cost$Million$0$9©2010BMCorporation12AgendaWhatisCloud?1WhatistheBenefittoBusiness?2HowCanitbeUsed?3HowCanIBMHelp?4NextSteps?5©2010BMCorporation13SomeworkloadsarecurrentlyreadytobedeliveredinacloudmodelDesktopsTestanddevelopmentComplextransactionprocessingProprietaryapplicationsBackupandrestoreCollaborationande-mailHighlysensitivedataCurrentlyMovingToCloudModelNotYetMovingToCloudModel©2010BMCorporation14EnterpriseTodaytherearethreeprimarydeliverymodelsthatcompaniesareimplementingforcloudPublicCloudITactivities/functionsareprovided“asaservice,”overtheInternetKeyfeatures:–Scalability–Automatic/rapidprovisioning–Standardizedofferings–Consumption-basedpricing.–Multi-tenancy–CapitalPreservationTraditionalEnterpriseITPrivateCloudITactivities/functionsareprovided“asaservice,”overanintranet,withintheenterpriseandbehindthefirewallKeyfeaturesinclude:–Scalability–Automatic/rapidprovisioning–Chargebackability–WidespreadvirtualizationHybridCloudInternalandexternalservicedeliverymethodsareintegrated,withactivities/functionsallocatedtobasedon