IBM Technology Conference Expo 2014

IBM Global Technology Services Thought Leadership White Paper Private cloud in the hybrid cloud era  The critical choices driving business value and agility

2 Private cloud in the hybrid cloud eraContents 2 Executive summary
3 Private cloud today
4 The road to hybrid computing
5 Private cloud: the core differentiators for your business
6 Speed
7 Dynamic scalability and flexibility
8 Optimization and efficiency
10 Security and resiliency 11 IBM expertise in the cloud 12 Conclusion  12 For more information

Executive summary Private clouds have become a major catalyst for business growth and differentiation while supporting organizations’ need to manage highly sensitive information. Along with public clouds, they are leading the way to a far more agile, open environment for development and innovation, providing developers with unbridled access to the resources they need to design, build and deploy differentiating products and services faster than ever before. They are also leveraging automation more extensively than ever before to solve problems and improve operational efficiencies, and they are churning out substantial cost savings in the process. And these benefits are just the beginning. As cloud computing moves into the hybrid era, the business impact is expected to broaden exponentially in ways that have yet to be fully understood.

Private clouds help lay the essential foundation for hybrid computing by putting in place much of the workload and management automation that will be needed. While an increasing number of private cloud products are providing turnkey functionality right out of the box, optimal business agility depends on making the right service and technology choices. Capitalizing on the transformative potential of private cloud requires leveraging the differentiators that will drive exponential value down the road—differentiators like:

•    Standardized    private    cloud    builds    with    the    automation    to    deliver fully functional private clouds in days or weeks •    Platform    as    a    service    (PaaS)    models    that    dramatically    speed    application development and time to market

•    Self-service    catalogs    that    provide    the    modular    flexibility,    easy scalability and customization to address rapidly changing needs •    Open    cloud    architectures    that    enable    hybrid    cloud    interoperability and provide a path to collaborative innovation

•    Automated    private    cloud    management    that    provides    infrastructure-wide    visibility    across    cloud    and    non-cloud    environments

•    Fully    integrated    security    and    resiliency    management,    with    the ability to recover rapidly in the event of an outage •    Analytics    that    can    identify    the    best    private    cloud    opportunities and delivery models, and facilitate the development of a holistic cloud strategy.

This paper looks at these and other private cloud differentiators, examining what they mean for the business and how best to incorporate them into your environment, based on the latest research, technologies and solutions.

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3.  Defining the cloud models… The National Institute of Standards and Technology (NIST) uses the following definitions:

•   Private    cloud    is    a    cloud    infrastructure    provisioned    for  exclusive    use    by    a    single    organization,    comprising    multiple consumers.    It    may    be    owned,    managed    and    operated    by    the  organization,    a    third    party    or    some    combination    of    them,    and it    may    exist    on    or    off    premises.           

•   Public    cloud    is    a    cloud    infrastructure    provisioned    for open use    by    the    general    public.    It    may    be    owned,    managed and  operated    by    one    or    more    organizations,    a    third    party    or    some combination    of    them,    and    it    may    exist    on    or    off    premises.

•   Hybrid    cloud    is    a    composition    of    two    or    more cloud  infrastructures    (usually    public    and    private)    that    remain    unique entities, but are bound together by technology that enables       data    and    application portability.

Private cloud today Today’s private clouds are delivering on every bit of cloud’s speed and agility promise, beginning with the myriad of deployment options they make available to adopters. Whether deployed onsite or offsite, individually or as part of a hybrid cloud, hosted or managed by a third party, private clouds are fundamentally changing the economics of the data center and, in the process, driving extraordinary value and competitive advantage for the business.

1.  Early apprehension about the high cost and complexity of deploying and managing private cloud, which inhibited adoption in years past, is fading and being replaced by a newfound understanding of private cloud as the logical next step beyond data center virtualization. As private clouds have matured and become easier to implement and use, early concerns have been quashed by the strategic advantages, especially    for    mission-critical    workloads,    including    security,    privacy and lower network latency. And the business value of these advantages is only just beginning to be tallied.

Large enterprises in particular are coming to realize that they can utilize their existing infrastructure to build and run a private cloud economically—at or below the cost of public cloud. Technology advances and growing commercial interest in cloud computing have led to an abundance of solutions that have simplified and lowered the cost of private cloud. Organizations    need    to    sift    carefully    to    determine    what’s    going    to work best in their environment and optimize the return for    their    business.    For    most,    that    will    mean    leveraging    legacy    systems in the best possible way. The good news is that open cloud standards and architectures are providing organizations with    the    flexibility    to    do    just    that.    They    can    leverage    legacy    data    center    resources    (from    bare    metal    to    hypervisors    to    portals)    and    be    assured    of    near    seamless    interoperability,    portability and management.

Such    success    also    depends    on    a    holistic    cloud    strategy.    Cloud computing affects the enterprise on multiple levels operationally, technologically and organizationally, and a holistic strategy takes these multidimensional impacts into account. It helps ensure the most advantageous cloud technologies and delivery models are used from the outset.

More and more, analytic tools are helping organizations assess the existing environment and planned applications to determine where cloud can drive the greatest differentiation for the    business    (see    sidebar,    next    page).    These    tools    not    only    help    identify the business areas and applications that will provide the best cloud opportunity, they compare the viability of specific cloud delivery models. This means they go beyond suggesting  4  Private cloud in the hybrid cloud era private or public clouds. They assess, for example, whether a private cloud should be deployed on premises, hosted and managed externally, and if external, whether it should be dedicated or shared. They also assess the potential platform choices    from    among    infrastructure    as    a    service    (IaaS),    platform    as    a    service    (PaaS),

software    as    a    service    (SaaS)    and    business    process    as    a    service    (BPaaS)    to    determine    what    makes    the    most    sense    (see    sidebar,    at    right).    The    best    of    these    analytic    tools    also    spell out the impact of cloud migration, making it possible to determine what will be needed for a smooth implementation.

Competitive business advantage via the cloud IBM’s    2013    global    cloud    study    found    business    leaders    becoming    increasingly    aware    of    the    business    value    of    cloud    computing.    Over    the    next    three    years,    cloud’s    strategic    importance    to    busi¬ness    users    is    expected    to    double    from    34    percent    to    72    percent,    even    surpassing    its    importance    to    IT    users.    Organizations    that    have    deployed    cloud    broadly    are    realizing    1.9X    higher    revenue    growth    and    2.4X    higher    gross    profit    than    their    more    cautious    peers.   

These    companies    are:   

•   136 percent more likely to use cloud to reinvent their  relationships with customers    

•   70 percent more likely to use the cloud extensively for analytics

•   79 percent more likely to leverage the cloud for collaboration  and expertise.    

But the greatest distinction is in their cloud strategy Cloud leaders are also way ahead of their peers with more comprehensive cloud strategies. They are nearly 4X as likely    to have an enterprisewide cloud strategy and 83 percent more likely to use hybrid cloud to capitalize on the strengths of both public and private cloud.

2.  As business leaders continue to realize the transformative value that cloud can provide to the business, their enterprise cloud strategies are focusing less on cost reduction and more on achieving the business agility to enter new markets, improve customer interactions and transform current business models. To be truly effective, cloud strategies must also address any legacy processes and organizational silos that are not in sync with    the    automation    and    self-service    requirements    of    the    cloud. Processes must be adapted for cloud standardization and chargeback, for example, to benefit fully from automation. Often    times,    breaking    down    existing    silos    and    integrating    current processes across the enterprise can be a major challenge,    and    the    most    forward-thinking,    holistic    cloud    strategies include the steps to overcome it.

Defining the service models… Four    types    of    IT    resources    can    be    delivered    on    demand    and    as    a    service    by    the    cloud—infrastructure,    platform,    software    and    business    processes:

•    IaaS    solutions    provide    the    infrastructure    resources    required                for    computing:    servers,    storage    and    networking        

•    PaaS solutions    provide    the    cloud-based    environment— operating    systems,    middleware    and    infrastructure—needed to support application    development and delivery

•   SaaS solutions provide  application  software  in  the   cloud    that  is owned and operated by others and    that    connects    to    users’ computers    via    the    Internet

•    BPaaS    solutions    provide    business    processes and industry solutions    via    the    cloud    to    improve    an    organization’s  operational  efficiencies    and    customer    relationships.

The road to hybrid computing With a majority of enterprises and small businesses already invested in public cloud and many edging their way toward private    cloud,    organizations    aren’t    choosing    sides    in    the    public-

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5. versus-private    cloud    debate.    The    notion    that    a    single    cloud    model can effectively meet all of the enterprise’s application requirements    is    just    not    practical.    Some    workloads    are    simply    better suited for private or public clouds. Consider legacy business applications which require compatibility with existing systems    and    need    to    be    configured    for    the    cloud    (“cloud- enabled    workloads”)    versus    mobile,    social    and    web    applications    which    are    built    to    run    on    the    cloud    (“cloud-native    workloads”).    The latter applications are a natural fit for public cloud; the former for private cloud.

Even among workloads designated for private cloud, some are    better    suited    for    on-premises deployment while others are better suited for off premises hosting and management by a third party.  The point is that workload specific security, scalability, economics and other requirements are directing organizations to select a mix of cloud types and delivery models for their environment. These companies are seeing the benefits of using multiple cloud models and coming to realize that the future of cloud computing is not solely in public or private cloud, but somewhere in between—in the hybrid space.

In fact, 76 percent of respondents in a 2013 survey expect hybrid clouds to be the core of their cloud strategy, overtaking public and private clouds in the next five years, with usage expected to grow to 43 percent, up from 27 percent today.3 Hybrid clouds allow enterprises to have the best of both, providing    an    integrated    solution    for    cloud-enabled    and    cloud- native workloads while handily addressing the management needs of the business. Hybrid clouds allow them to retain control of their IT environment with the security and privacy to protect proprietary systems and data, maintain regulatory compliance    and    ensure    service    levels.    But    they    also    address    the organization’s rapidly escalating scalability and processing demands in a way that private cloud by itself cannot. As volatile web applications and the increasing thirst for business analytics and innovation exceed private cloud resources, linking to public    clouds    to    accommodate    the    unpredictable    peaks    cost- effectively is a logical path for organizations.

In the textbook hybrid scenario, a private cloud can quickly reach out to a public cloud to get needed resources when its own capacity becomes overwhelmed. These virtual resources move    fluidly    back    and    forth    between    cloud    models,    without    exposing the private cloud to a public breach.  In the event of a private cloud service disruption, the public cloud can also provide backup resources or a failover site, enabling organizations to avoid the capital expense and management burden of maintaining standby capacity or a secondary site. This ability to burst into the public cloud when needed,  so-called    “cloudbursting,”    has    made    hybrid    cloud    a     destination architecture.

Private cloud: the core differentiators for your business Agility is the primary reason organizations are moving to the cloud.    Being    able    to    respond    quickly    and    cost-efficiently    to    unpredictable demands has become a competitive necessity for modern business.

Organizations    are    turning    to    private    clouds    to    capture    the    same agility internally that they’ve achieved with public clouds externally. They want the same speed, dynamic scalability, flexibility,    optimization    and    efficiency,    while    addressing    the    need for exclusivity and compliance. All of these attributes can drive transformative value for the business, making them core differentiators for any private cloud deployment and an essential part of the business conversation around private cloud. Weighing their merits for your own environment in the context of your requirements and objectives can help ease the transition and optimize the strategic benefits for your business.

6.    Private cloud in the hybrid cloud era
The remainder of this paper examines these core differentiators    in    detail,    sharing    IBM’s    view    on    how    best    to    deploy them to augment the benefits for your business in the hybrid cloud era.

Speed Competition    in    the    fast-paced,    globally    connected    world    demands that services be delivered faster and that end users and developers have access to the resources they need whenever they need them. New private cloud technologies are making that possible by: 

•   Automating the deployment of fully functional private clouds in weeks or less

•   Enabling organizations to leverage PaaS models that automate middleware provisioning and increase workload automation

•    Ramping    up    users’    self-service    capabilities.

In addition, emerging open cloud architectures will advance the speed of the enterprise, streamlining cloud deployment and new development by enabling interoperability with legacy infrastructures and future technologies. These architectures are discussed later in this paper.

Automating private cloud deployment Private cloud needn’t take months or even years to implement anymore.    Standardized    private    cloud    builds    eliminate    the    need    to build a private cloud from scratch, leveraging automation to drastically simplify deployment and reducing the average time frame to days or weeks. The builds typically handle server, storage and network provisioning and configuration, and the installation of management systems in a manner consistent with security and operational policies.

Automated scripts are used to install application software, operating systems and middleware, simplifying new server deployments    and    disaster    recovery.    But    the    benefits    of    automated deployment go beyond speed and efficiency.

Organizations    are    able    to    start    small    and    scale    up    their    private    cloud incrementally, deploying the cloud they want, when they want it and adding physical nodes and virtual servers on a timetable aligned to their operational and economic needs.

Extending automation with PaaS PaaS    clouds    are    creating    a    substantial    revenue    opportunity    for    the enterprise by providing a simplified, agile environment for application development, integration and management. PaaS    extends    automation    to    the    platform    layer,    allowing    developers to provision operating systems and middleware with the same speed and ease that they provision infrastructure resources. According to IDC, this automation toolset will be an important differentiator for the business over the next few years, fueling a wave of innovation and commercial application development and creating strong allegiances among the developer community.

4. A recent IBM study found that PaaS “pioneers”—those companies at the    forefront of PaaS cloud adoption—rolled out applications faster and operated more nimbly than companies whose PaaS adoption was minimal or non- existent. They were six times more likely to use cloud for new development and three times more likely to use it for analytics. Moreover, they were getting in front of customers more quickly, getting feedback more rapidly and applying that knowledge in new initiatives.

5.   With    PaaS    clouds,    best    practices    and    expertise    for    operating    systems and middleware are codified, creating reusable, standardized    “patterns.”    The    patterns    are    used    by    IT    administrators to provision new cloud hardware or by developers to provision capacity resources for a new project. Patterns replace complex development tasks like database configuration with a simple download. This can speed the whole application development lifecycle. Instead of starting with a blank slate each time they need to create a new application, developers can choose from a rich set of tools in the    PaaS    private    cloud.    They    can    assemble    applications very IBM Global Technology Services  7 quickly and efficiently, without a major technology investment. Moreover, they can be first to market, which is critical to business leadership.

PaaS    clouds    also    enable    higher    levels    of    workload    automation,    because the patterns specify what capacity and platform resources are needed to run workloads at desired performance levels and transaction rates. They automatically direct what happens, for example, when workloads start to peak and saturate private cloud resources. 

Though    IaaS    private    clouds    have    historically    dominated    the    private    cloud    market,    PaaS    cloud    benefits    have    led    to    a    marked    increase    in    deployment.    PaaS    clouds    are    now    growing    at    a    faster    rate    than    IaaS    clouds.    According    to    451    Research’s    Market    Monitor,    PaaS    is    expected    to    realize    a    compound    annual    growth    rate    (CAGR)    of    41    percent    from    2012    to    2016    compared    to    37    percent    for    IaaS.6    Furthermore,    IDC    predicts    that    IaaS    clouds    without    PaaS    capabilities    will    become    a    “dying    breed” as companies continue to recognize the differentiating value    that    PaaS    brings    to    development    and    innovation.

7.   Ramping up users’ self-service capabilities One    of    the    basic    tenets    of    cloud    computing,    self-service,    shifts control of IT services and resources to users, allowing them to request what they need from online catalogs. New private cloud technologies streamline the process even further. Developers    using    a    PaaS    private    cloud,    for    example,    can    request a web server without worrying about the configuration or platform details. They can develop and deploy applications without having to install, configure or integrate the requisite middleware, operating systems or hypervisors. The complexities of the cloud architecture are abstracted or hidden, allowing developers and other users to do their jobs faster. 

Self-service    catalogs    give    the    enterprise    a    way    to    deploy    and    reinforce the use of standard service offerings. These offerings can drive down or eliminate the need for ad hoc requests by allowing companies to maintain fewer images, configurations and    versions.    Standardization    can    also    simplify    and    accelerate    system management while reducing the total cost of operations.

Catalog    efficiency    depends    on    a    seamless    workflow    with    all    of    the components involved, including configuration management databases, change management tools and the service desk. Integration is key, and it can be especially challenging with prebuilt vendor catalogs that use services and delivery systems that are incompatible with those used by the organization.

Dynamic scalability and flexibility The business landscape is constantly changing. Private clouds that    are    dynamically    scalable    and    flexible    enable    organizations    to respond to new demands as they happen without incurring significant    cost    and    risk.    But    certain    private    cloud    capabilities    can increase organizations’ responsiveness to change while enabling them to run private clouds on their own terms, with the infrastructure and services they choose: 
•    Open    standards    and    reference    architectures •    Modular    services    and    customization.

Open standards and reference architectures Portability in a hybrid cloud environment depends on adherence    to    open    standards.    Open    standards    allow    application    workloads    to    flow    seamlessly    between    cloud    models    and    hypervisors, while enabling organizations to avoid the risks of    proprietary    software    and    vendor    lock-in.    In    that    way,    open    standards    increase    the    long-term    viability    of    cloud    investments.   

Open    standards-based    computing    platforms    like    OpenStack    are designed for interoperability and the development of sustainable applications for cloud. The underlying reference architecture provides a comprehensive framework for constructing and managing open cloud infrastructures and preventing unnecessary architectural complexity.

Open    cloud    architectures    offer    significant    application    development advantages, providing a platform for collaborative

8.     Private cloud in the hybrid cloud erainnovation and enabling developers to focus on development. Developers    have    the    flexibility    to    choose    the    infrastructure    and middleware components that they are most comfortable with while being assured of interoperability. With open architectures, they can select from thousands of application programming    interfaces    (APIs)    and    they    can    extend    them    either    through    their    own    or    third-party    capabilities    without    compatibility concerns. Applications can be developed and delivered much faster—in days instead of weeks or months. Furthermore,    if    the    organization    decides    to    change    cloud    providers later on, developers don’t have to rebuild the entire application, which can be hugely expensive and impractical.

Open    cloud    architectures    and    technologies    also    simplify    management, enabling organizations to use the same set of tools    for    managing    cloud    and    non-cloud    environments    inside    and    outside    of    the    data    center.    Open    source    interoperability    breaks down information silos and increases opportunities to collaborate    and    share    data    and    to    generate    high-value    business    analytics across traditional and cloud resources. It helps to lay the foundation for hybrid computing.

Modular services and customization Private cloud solutions that are built on a modular framework allow organizations to implement and expand their private clouds by selecting infrastructure and service modules from a    catalog.    These    pre-integrated    modules    can    be    plugged    in    quickly and easily, reducing the time it takes to deploy the cloud.

Modular frameworks make it easier for organizations to implement the services they want when it is most advantageous. They can begin with a small number of virtual machines and scale up as their resource needs change. The expandable modules are designed to accommodate server, storage and network requirements. Desired management and security capabilities can be implemented by choosing from available service modules. However, modular frameworks do not preclude the need for customization.

Organizations    that    are    hesitant    to    move    to    private    clouds    often    cite the lack of customization opportunities. In fact, IDC’s 2012    CloudTrack    Survey    found    it    to    be    the    leading    concern    inhibiting private cloud adoption.8
Having    the    ability    to    customize    vendor-provided    platform    tools    or    develop    alternatives    is    critical    when    a    vendor’s    out-of- the-box    features    don’t    fully    address    enterprise    requirements.    But    customization    can    be    time-consuming    and    expensive.    Leading private cloud platforms are getting around this and helping to reduce the need for customization by expanding the number of choices in the service catalog. They are including extensive service libraries, increasing the likelihood that organizations will find the platform and application services that meet their requirements, with little or no customization necessary. When services do need to be customized or created, organizations can add them to the library so they are available for future development projects. 

As the demand for hybrid computing escalates, workload capacity controls, analytics and other advanced cloud services are being made available. Having a modular framework makes it easier to assimilate and deploy these services.

Optimization and efficiency Much of the appeal of private cloud is economic since it enables organizations to address rising infrastructure and management costs. Private cloud optimizes infrastructure performance and drives efficiencies that help lower costs, and these    improvements    can    be    transformative    for    the    business.    But    the degree to which an organization achieves them depends on: 

•    Having    the    option    to    leverage    existing    data    center    resources    •    Automating    private    cloud    maintenance    and    management •    Selecting    the    right    applications    for    private    cloud.   

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9. Having the option to leverage existing resources By    the    time    most    organizations    decide    to    adopt    private    cloud,    they have already made a significant investment in their IT infrastructure. Private cloud platforms that offer the option to leverage this infrastructure enable them to get the most out of    that    investment.    But    salvaging    legacy    systems    can    be    tricky.    As this paper has alluded, many cloud platforms are built on technologies that inhibit their ability to support legacy systems. Moreover, some existing environments are so fragmented and heterogeneous that they are difficult for private cloud platforms to support—even the most open platforms.

Compatibility with legacy hardware and operating systems should be determined for each private cloud platform under consideration.    Self-service    dashboards    can    facilitate    integration    with legacy systems by simplifying access to APIs and other required resources. Platforms should be extensible and enable API    customization    for    non-supported    systems. 

Automating private cloud maintenance  and management Most companies spend an inordinate amount of time and money on IT maintenance and management—upwards of 70    percent    of    the    IT    budget.    Still,    routine    tasks    like    software    updates and security patches are often an afterthought, or skipped altogether because the associated manual procedures can    be    so    time-consuming    and    difficult    to    carry    out.   

According    to    IDC’s    2012    CloudTrack    Survey,    the    desire    to    reduce    IT    staff    headcount    was    the    number-one    reason    IT    and business leaders cited for deploying a private cloud.9 Automation    is    eliminating    much    of    the    manual    labor    and    labor- intensive management tools that can drive up operating costs and    headcount,    whether    those    functions    are    handled    by    in- house    staff    or    outsourced    to    a    third-party    provider.    Designated    users execute desired IT support and monitoring functions via    a    self-service    dashboard    and    catalog    of    management    services, including server reboots, operating system reloads and load balancing as well as failover and recovery functions. Automation also facilitates the use of management analytics and can trigger corrective action or optimization.

Besides    automation,    business    leaders    want    infrastructure-wide    visibility    and    control    over    cloud    and    non-cloud    environments.    They want to consolidate management systems to reduce complexity and facilitate the transition to hybrid computing. Leading private cloud platforms provide the means to do that with a single point of control for managing hardware and systems across both infrastructures.
Selecting the right applications for private cloud Organizations    need    to    give    careful    consideration    to    the    applications they want to move to private cloud in order to address regulatory issues, required service levels, usage patterns and integration with other enterprise applications. More importantly, they need to consider the business benefits—the tactical and strategic value of moving those applications.

While extensive coding changes can be required to enable legacy applications to run in the cloud, new private cloud platforms are making it increasingly advantageous to migrate these    applications    by    providing    the    necessary    value,    flexibility    and    deployment    speed.    Still,    potential    business    gains    must    be weighed against deployment challenges for each legacy application    under    consideration.    Some    applications    may    be    so    highly optimized for the current environment that there is little to    be    gained    from    a    move    to    private    cloud.    Others    may    be    so    costly to run in the current environment that a move to private cloud has the potential to provide considerable financial benefit.

Sophisticated    analytic    tools    are    taking    the    subjectivity    out    of    cloud deployment decisions and should be used to identify 10     Private cloud in the hybrid cloud era the most suitable applications for migration. Using criteria like data sensitivity, support costs, dependencies, migration complexity and peak processing requirements, applications are assessed against potential cloud models. Algorithmic analysis is used to identify the costs and impact of moving applications to the cloud, helping organizations to decide the best candidates for migration.

IBM on application selection and maximizing cloud value IBM’s    own    first    major    cloud    initiative    was    aimed    at    achieving    cost    and    operational    efficiencies    and    increasing    business    agility.    But    with    a    list    of    more    than    9,500    potential    applications    for    cloud,    the    first    step    was    narrowing    the    field.    This    led    to    the    development    of    an    analytic-based    application    workload    analysis    tool    and    methodology    that    enabled    us    to    prioritize    just    over    200    applications    for    initial    migration    to    cloud. We    have    since    migrated    several    fundamental    IT    workloads    to    private    clouds,    and    we    have    witnessed    major    efficiency    improvements    while    capturing    some    impressive    savings    in    capital    and    operations:    •    IBM’s    development    and    test    cloud    has    virtually    eliminated  IBM’s    testing    backlog,    speeding    new    development    and  enabling    applications    to    launch    much    sooner. Development teams    have    seen    server    provisioning    and    configuration    drop from five days or longer to as little as one hour. •    Organizations    across    IBM    tap    into    our    centralized    analytics  cloud, Blue Insight, for tools and business intelligence    aggregated from hundreds of information warehouses. The    business value of these analytic insights is estimated to be       more    than    US$300    million    for    the    top    20    projects    alone,    out of    approximately    300    active    projects.    In    addition,    Blue    Insight put    an    end    to    the    six-figure    funding    required    for    new    business intelligence    projects. •    Our    storage    cloud    cut    the    cost-per-byte    of    data    stored    by nearly    50    percent    at    each    of    the    IBM    facilities    in    which    it    was     implemented.    This    has    allowed    these    facilities    to accommodate    the    explosive    growth    in    storage    demand— 25    percent    or    more    annually—without    increasing    their    total   storage    budget,    and    they    are    expected    to    be    able    to    do    so    for         four straight years. •    Our    social    software    platform    in    the    cloud,    known    as  IBM    Connections,    has    dramatically    increased    workplace  collaboration,    productivity    and    innovation,    while    enabling    us to    build    awareness    of    our    products    and    services.  The cloud currently    supports    over    50    million    web    conferencing    minutes  per    month.

10     Security and resiliency Dedicated private clouds have gained traction by minimizing the risks associated with multitenant cloud environments.  Still,    business-critical,    highly    sensitive    workloads    running     on a private cloud demand fully integrated security and resiliency that is up to the standards of conventional physical and virtual environments. 

In general, private cloud platforms are distinguished by their ability to manage security and recover rapidly in the event of an outage. The ideal platform offers proactive security monitoring    and    end-to-end    coverage    for    the    private    cloud    infrastructure, applications and data, as well as identity and access management, intrusion detection, vulnerability assessments and incident management. It includes tools for business resilience and continuity: managed backup protection, rapid failover capability, and content management to facilitate data    archival    and    retrieval.    Organizations    should    be    able    to    select desired security and resiliency services from a broad menu of available options, allowing them to satisfy their risk tolerance as well as their budgetary constraints.

The private cloud architecture should also provide sufficient governance oversight, with a detailed view of security and current threat levels and alert notifications as required. It should provide    a    security-rich    environment    for    creating    applications    and using cloud services without hindering productivity.

IBM Global Technology Services     11 Finally,    private    clouds    should    have    some    provision    for    verifying    compliance with corporate security policies and industry and federal regulations. This includes monitoring the cloud infrastructure    and    workflow    to    see    that    policies    are    upheld.    Maintaining compliance also requires organizations to do proper due diligence to understand data protection laws in each country in which they operate and to assess the risks of migrating particular workloads and services to the cloud.

IBM expertise in the cloud With more than 5,000 engagements in the private cloud space alone,    IBM    has    the    expertise    to    help    satisfy    the    increasing    appetite for this cloud model. Today, our private cloud services portfolio    is    one    of    the    broadest    in    the    industry.    IBM    was    named    an    IaaS,    PaaS    and    SaaS    value    leader    for    private    cloud— with a higher solution impact than any other vendor studied— in    Enterprise    Management    Associates’    2013    Radar    Report.

11 IBM    understands    that    cloud    environments    must    accommodate    many different types of applications, with vastly different workload    requirements.    Our    continuum    of    private    cloud    deployment models alone enables us to meet those needs, ranging    from    a    low-cost,    fully    managed    multitenant    private    cloud    to    a    security-rich    dedicated    private    cloud.    We    offer    cloud solutions that are fully integrated and automated across infrastructure and platform layers, making it easier for organizations to deploy applications—but also to build and manage them in the cloud. This is just one of many things we do to increase the value of the cloud for our clients. 

Our    private    cloud    consulting    services    help    organizations    identify and prioritize cloud opportunities with a focus on creating new revenue streams through business model improvement.    Our    infrastructure    and    managed    services    solutions enable rapid deployment on premises and off, and they facilitate the interoperability required for hybrid cloud.

Clients can leverage our cloud infrastructure or their existing infrastructure    investment—including    both    IBM    and    non- IBM    products.    They    can    retain    management    responsibility    or    offload    that    responsibility    to    IBM.    We    simplify    IT    management by providing integrated solutions for cloud and non-cloud    infrastructures.   

We continue to invest in our enterprise cloud vision, with tightly integrated services that support private, public and hybrid cloud models. We have led the way in embracing  new    cloud    technologies,    including    IaaS    and    PaaS    private     cloud    services,    SoftLayer    hybrid    architectures,    expert    integrated    systems    like    IBM    PureSystems®,    and    IBM    SmartCloud®    Orchestrator,    an    open    cloud    management    platform for hybrid environments.

We are helping to define the new era of open cloud  computing, leveraging our considerable open source experience in enterprise IT. We understand firsthand that an open, vibrant ecosystem is the key to success for the enterprise. It is the essential foundation for cloud adoption, but also for the collaborative innovation that will continue to drive strategic differentiation.

IDC names IBM a worldwide leader in Cloud  Professional Services “Through    its    broad    portfolio    of    consulting,    application,    platform    and    infrastructure    services    for    cloud,    IBM    has    helped    thousands    of    clients    adopt    cloud    models    and    manages    5.5    million    cloud-based    transactions    every    day.    IBM    helps    clients    in    more    than    18    industries    build    their    own    clouds    or    securely    tap    into    IBM    cloud-based    business    and    infrastructure    services.    IBM    uniquely    brings    together    business    consulting,    industry     and    process    knowledge,    and    a    broad    portfolio    of    cloud    solutions, including its own software, hardware, and IBM Research innovations.”12   

Conclusion Private clouds don’t exist in isolation. They are part of a larger ecosystem that is driving hybrid activity with public clouds and the rest of the data center infrastructure. Today the big question for executive decision makers is not when to embrace private cloud, but how.

Making the right private cloud choices comes down to understanding the core differentiators that will drive the greatest agility and value for the business—speed, dynamic scalability    and    flexibility,    optimization    and    efficiency,    and    security and resiliency—and taking advantage of the private cloud technologies that can help you achieve them.

For more information To    learn    how    IBM    is    helping    organizations    succeed    with    private    cloud,    please    contact    your    IBM    representative    or    IBM    Business    Partner,    or    visit: ©Copyright    IBM    Corporation    2013 IBM    Global    Services Route    100 Somers,    NY    10589 U.S.A.

Produced    in    the    United    States    of    America December 2013
IBM,    the    IBM    logo,    IBM    SmartCloud,    Orchestrator,    PureSystems    and    are    trademarks    of    International    Business    Machines    Corporation    in    the    United    States,    other    countries    or    both.    If    these    and    other    IBM    trademarked    terms    are    marked    on    their    first    occurrence    in    this    information    with    a    trademark    symbol    (®    or    TM),    these    symbols    indicate    U.S.    registered    or    common    law    trademarks    owned    by    IBM    at    the    time    this    information    was    published.    Such    trademarks    may    also    be    registered    or    common    law    trademarks    in    other    countries.    Other    product,    company    or service names may be trademarks or service marks of others. A current    list    of    IBM    trademarks    is    available    on    the    web    at    “Copyright    and    trademark information” at

This document is current as of the initial date of publication and may be changed    by    IBM    at    any    time. Not    all    offerings    are    available    in    every    country    in    which    IBM    operates.

The performance data discussed herein is presented as derived under specific operating conditions. Actual results may vary. It is the user’s responsibility to evaluate and verify the operation of any other products or    programs    with    IBM    products    and    programs.

THE    INFORMATION    IN    THIS    DOCUMENT    IS    PROVIDED    “AS    IS”    WITHOUT    ANY    WARRANTY,    EXPRESS    OR    IMPLIED,    INCLUDING    WITHOUT    ANY    WARRANTIES    OF    MERCHANTABILITY,    FITNESS    FOR    A    PARTICULAR    PURPOSE    AND    ANY    WARRANTY    OR    CONDITION    OF    NON- INFRINGEMENT.    IBM    products    are    warranted    according    to    the    terms    and conditions of the agreements under which they are provided.
Statements    regarding    IBM’s    future    direction    and    intent    are    subject     to change or withdrawal without notice, and represent goals and objectives only. Actual available storage capacity may be reported for  both uncompressed and compressed data and will vary and may be less than stated.

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1,2 IBM,  “Under cloud cover: How leaders are accelerating competitive differentiation,”  October    2013.    3 North    Bridge    Venture    Partners    and    GigaOM    Research,    “The Future of Cloud Computing: 3rd Annual Survey 2013,”    October    2013.    4 IDC, “IDC Predictions 2014: Battles for Dominance and Survival on the 3rd Platform,” IDC #244606, December 2013. 5 IBM,    “Exploring the frontiers of cloud computing: Insights from Platform-as- a-Service pioneers,”    October    2012.    6 451    Research,    “451 Research analysis of the cloud computing market points to a 36% CAGR through 2016,” August 14, 2013. 7 IDC, “IDC Predictions 2014: Battles for Dominance and Survival on the 3rd Platform,” IDC #244606, December 2013. 8,9 IDC, “Enterprise cloud public and private end-user adoption signals continued shifts in IT spending,” IDC    #237171,    Volume:    1,    October    2012.    10 IBM,    “Success in the Cloud: Why workload matters,”  July 2013.  11 Enterprise Management Associates, “EMA Radar for Private Cloud Platforms: Q1 2013: Report Summary & IBM Profile,” March 2013. 12 IDC, “IDC MarketScape: Worldwide Cloud Professional Services 2013- Vendor Analysis, doc #242401, Volume:1,” August 2013.






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