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Cloud 2 Agenda 3 ThereisgreaterneedforITtohelpaddressbusinesschallenges ReducingRiskEnsuretherightlevelsofsecurityandresiliencyacrossallbusinessdataandprocesses BreakthroughAgilityIncreaseabilitytoquicklydelivernewservicestocapitalizeonopportunitieswhilecontainingcostsandmanagingrisk HigherQualityServicesImprovequalityofservicesanddelivernewservicesthathelpthebusinessgrowandreducecosts DoingMorewithLessReducecapitalexpendituresandoperationalexpenses 4 CloudComputing StrategicView IBMConfidential 4 Auserexperience businessmodelStandardized selfserviceofferingsRapidlyprovisionedservicesFlexiblypriced Cloudcomputingistheprovisionofdynamicallyscalableandoftenvirtualisedresourcesasaserviceovertheinternet publiccloud orintranet privatecloud AninfrastructuremanagementandservicesdeliverymethodVirtualizedresourcesManagedasasinglelargeresourceDeliveredserviceswithelasticscaling BusinessPerspective ITPerspective 5 Cloudisdrivingbusinessinnovationwithconvergenceofavailabletechnologies Convergenceofavailabletechnologies ademandingmarketplaceandashiftinsocietalexpectations AnExamplefromtheBankingIndustry 6 Agenda 7 CloudComputingprovidesbenefitsacrosstheenterprise ITAnalysts FinancialAnalysts ITCustomers EndUsers CommonAttributesofCloudsEnhanceduserexperienceElasticscalingAutomatedprovisioningHighlyvirtualized Source IBMCorporateStrategyanalysisofMI PR ARandVCGcompilations Anywhereaccesstoapplicationsthroughasimplifieduserinterface Rapidtimetomarketfornewservices Anywhereaccesstoapplicationsthroughasimplifieduserinterface Abilitytoelasticallyscaleresourcesandmaintainhighqualityofservice Abilitytoelasticallyscaleresourcesatsignificantlylowerincrementalmanagementcost 8 WhytheC SuiteisinterestedinCloudComputing CloudComputingisakeycatalystforthesechanges Theabilitytoadaptabusinessmodeltomeetnewexpectationsandcapturenewshortlivedrevenuestreams requireshighlyflexiblecoreprocessesandITinfrastructurethatcanturnonadime 9 AccelerateinnovationprojectsthatcanleadtonewrevenueMakeITanenablerof notabarriertorapidinnovationProvideaneffectiveandcreativeservicedeliverymodelDeliverservicesinalesscostlyandhigherqualitybusinessmodel whileprovidingserviceaccessubiquityCreateasustainablecompetitivedifferentiationRapidlydeployapplicationsovertheinternetandleveragenewtechnologiestodeliverserviceswhen whereandhowyourclientswantthem beforeyourcompetitorsdo LowerITbarrierstolaunchnewbusinessservicesBuildandintegratemodularservices inrecordtime byleveraging rentable ITservicescapabilities payonlyforwhatyouuse ResultinginBusinessandITalignedbenefits 10 CloudcomputingdrivesexponentialimprovementsacrossITandtheBusiness 10 VIRTUALIZATION AUTOMATION STANDARDIZATION Legacyenvironments Cloud enabledenterprise Cloudacceleratesbusinessvalueacrossawidevarietyofdomains 11 11 PrivateTestCloudROIAnalysisExampleInternationalFinancialInstitution SavingbyCategory1stYearAfterCloudTransformation CostStructureWithandWithoutCloudTransformation Without With Current Year1 Year2 Year3 Cost Million 0 9 12 Agenda 13 Someworkloadsarecurrentlyreadytobedeliveredinacloudmodel Desktops Testanddevelopment Complextransactionprocessing Proprietaryapplications Backupandrestore Collaborationande mail Highlysensitivedata CurrentlyMovingToCloudModel NotYetMovingToCloudModel 14 Enterprise Todaytherearethreeprimarydeliverymodelsthatcompaniesareimplementingforcloud PublicCloudITactivities functionsareprovided asaservice overtheInternetKeyfeatures ScalabilityAutomatic rapidprovisioningStandardizedofferingsConsumption basedpricing Multi tenancyCapitalPreservation TraditionalEnterpriseIT PrivateCloudITactivities functionsareprovided asaservice overanintranet withintheenterpriseandbehindthefirewallKeyfeaturesinclude ScalabilityAutomatic rapidprovisioningChargebackabilityWidespreadvirtualization HybridCloudInternalandexternalservicedeliverymethodsareintegrated withactivities functionsallocatedtobasedonsecurityrequirements criticality architectureandotherestablishedpolicies PrivateCloud PublicClouds HybridCloud Source IBMMarketInsights CloudComputingResearch July2009 15 Whichworkloadsofferthemostfavorableentrypointsforeachoftheclouddeliverymodels Source IBMMarketInsights CloudComputingResearch July2009 n 1 090 Workloadswillneedtobedeterminedbasedonvalueandfeasibility Analytics Collaboration DevelopmentandTest DesktopandDevices InfrastructureCompute InfrastructureStorage 16 Agenda 17 DeliveringCloudComputingtoourClients EnterpriseDataCenter Cloud SmartBusinessServicescloudservicesdelivered SmartBusinessSystemspurpose builtinfrastructure StandardisedservicesontheIBMcloud Privatecloudservicesbehindyourfirewall builtand orrunbyIBM Pre integratedhardware softwareandserviceofferings IBMhas3choicestodeploytheworkloadsthatmattertoourclientsforgreaterefficiency productivity andcontrol PrivateCloud 18 IBMCloudOfferings SmartBusinessontheIBMcloud IBMSmartBusinessServices IBMSmartBusinessSystems StandardizedservicesontheIBMcloud Pre integrated workload optimizedsystems Privatecloudservices behindyourfirewall builtand ormanagedbyIBM IBMLotusLiveIBMLotus iNotes IBMCloudBurst family IBMSmartBusinessDevelopmentandTestCloud IBMSmartBusinessDesktopCloud IBMSmartBusinessStorageCloud Analytics Collaboration Developmentandtest Desktopanddevices Infrastructurestorage IBMSmartAnalyticsSystem Smartbusinessforsmallormidsizebusiness backedbytheIBMcloud Infrastructurecompute IBMComputingonDemand IBMInformationProtectionServices Businessservices BPMBlueWorks designtools IBMSmartAnalyticsCloud SmartbusinessexpensereportingontheIBMcloud IBMInformationArchive IBMSmartBusinessDevelopmentandTestontheIBMCloud IBMCloudBurst family IBMSmartBusinessDevelopmentandTestCloud IBMSmartbusinessendusersupport selfenablementportal SmartBusinessDesktopontheIBMCloud 19 DevelopcloudstrategyandroadmapAssessclouddeploymentmodels serviceoptionsandworkloadsROIAnalysisChooseinitialproject HowwehelpourClientsgetstartedwithcloudcomputing StartwithanisolatedpilotclouddeploymentArchitectandimplementlow riskworkloadssuchastestanddevelopmentforcloudStandardizeapplicationsandsystemsDeployself serviceportal RolloutcloudacrosstheenterpriseEnableadditionalworkloadsonprivatecloudAddnewusersUsetrustedpubliccloudservicestosupplementbusinessandITworkloads PilotandDeploy ExtendandEvolve PlanandPrepare ConditionexistinginfrastructureforcloudVirtualizeandautomateexistingsystemsAddservicemanagement servicecatalog 20 BusinessValue ThejourneytocloudneedsFlexible Efficient AutomatedInfrastructure Consolidate Virtualize Centralize Automate Optimize OrganizationCultureGovernance requiresanintegrate

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