Cloud Computing and the Changing IT Model
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The document discusses how cloud computing is changing the IT model and project delivery. It defines cloud computing and its key characteristics like on-demand access to pooled computing resources. Cloud represents the "industrialization of IT" by automating processes like previous innovations in telecoms and manufacturing. The need to reduce out of control management costs of traditional IT is clear. While initially an IT concern, business leaders now see cloud as extremely important to overall business success. The future will see a co-existence of traditional "systems of record" and newer "systems of engagement" applications developed for and delivered via the cloud.
Cloud Computing and the Changing IT Model
- 1. Ric Telford, VP Cloud Services, IBM December 12th, 2013 Cloud Computing and the Changing IT Model How it impacts project delivery
- 2. So what is Cloud Computing? Cloud computing is an IT consumption and delivery model for enabling convenient, on-demand network access to a shared pool of configurable computing resources that can be rapidly provisioned and released with minimal management effort or service provider interaction. 5 key characteristics: 1. On-demand self-service 2. Ubiquitous network access 3. Resource pooling 4. Rapid elasticity 5. Measured Service Source: 2009 National Institute of Standards and Technology, Information Technology Laboratory 2 Usage Tracking Virtualization Elastic Automation
- 3. Cloud computing represents the “Industrialization of IT,” similar to when: Telcos automated traffic through switches to assure service and lower cost. Manufacturers started using robotics to improve quality and lower cost. Banks built the automated teller machine network to improve service and lower cost. 3
- 4. The need is clear…management costs of today's IT infrastructure are out of control 4
- 5. Think cloud is just an IT obsession? Business leaders disagree Cloud is extremely important to overall business success LOB’s strategic interest in cloud will soon surpass IT’s and it spans virtually every area of the business (finance, operations, sales and marketing, product development). Today In three years 72% LOB 112% increase 58% 49% IT 18% increase 34% 5 5 “Cloud” was defined as encompassing application, platform or infrastructure as a service as well as private, public or hybrid delivery models. Source: IBM Center for Applied Insights Under cloud cover: How leaders are accelerating competitive differentiation For more info, visit: ibm.com/ibmcai/globalcloudstudy
- 6. Moving more to Cloud increases time to value but decreases control 6
- 7. Demands of technology and widespread digitization is just exacerbating the problem Advanced Predictive Analytics Cyber Security Infrastructure Optimization 7 Explosion of Mobile Devices Big Data Real-time Sensor Data Growth of Social Media
- 8. Over 50 years of technology evolution, we have seen major shifts in computing architectures Cloud Big Data Platforms Social Mobile Web, e-business and SOA Transaction Systems Interconnected solutions Action taken immediately at real time speeds User device capability & variety growing exponentially Multiple applications Infrastructure stressed with volume and velocity of data Some shared data Open innovation Dedicated systems Post processing in warehouses Unpredictable workload patterns Single database Batch processing Managed one solution Time to business action Strategic and tactical differentiator Time 19608 1990- 2010-
- 9. Technology has never been more important to business For the first time, CEOs identify technology as the most important external force impacting their organizations 2004 2006 2008 2010 2012 71% Technology Factors 69% People Skills 68% Market Factors Macro-economic factors Regulatory Concerns Globalization “Survival skill 101 for the next five years will be deriving insight ahead of peers.” CEO Healthcare, Australia 9 “Simplification and standardization are key strategies that we have been using to reduce existing and future complexity.” CEO Consumer Packaged Goods, USA
- 10. THE of services will be by new application models THAT ARE 10
- 11. Two Application Models will Co-exist in the Enterprise “Born in the Enterprise” Systems of Record “Born on the Cloud” Systems of Engagement Scalable Elastic Virtualized Multi-tenant Automated lifecycle Integrated lifecycle Heterogeneous infrastructure Standardized infrastructure Primarily existing virtualized workloads, back office, middleware-based Compatibility with existing systems 11 Primarily emerging platform workloads, new development, web-facing, scale-out on cloud, SaaS Exploitation of new environments
- 12. To see where Corporate apps will be tomorrow, look at where Consumer apps are today 12
- 13. IDC on the Consumerization of IT 13
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- 15. To make sure your applications can deliver what you need, when you need it, optimize the application lifecycle. Challenges with the traditional application lifecycle: • Providing a security-rich and consistent environment across development, testing and production • Integrating applications across internal and external environments • Reducing risk and high costs of down time from lack of skills, human error and inconsistencies • Keeping applications available, mitigating disruptions to the application lifecycle • Managing the complexity of installing, configuring, integrating and maintaining middleware and infrastructure components Project initiation Requirement analysis Optimize Applications for internal use or resale Build Shared resource activation Deploy to production Integration Deploy to test Application lifecycle 15
- 16. How quickly can your organization develop and deploy innovative applications that enable business growth and keep you competitive? Impediments to delivering new applications effectively and efficiently include: • Up to 41 percent of organizations experience delays1: – In integration, configuration and testing apps – Due to troubleshooting and fine-tuning issues in production • Up to 51 percent of applications are rolled back due to quality issues escaping into production1 • Up to four-to-six weeks to deliver a simple change2 Customers Desire for fast and continuous innovation 1 2 Line of business First First gap gap Development team Operations team Traditional operations Requirements Forrester/IBM Study: A New View of IBM’s Opportunity for Integrated Optimized Systems Address, 2011 Forrester “Five Ways To Streamline Release Management,” 2011 16 Second gap
- 17. “Born in the Cloud” Driving Improvements in Development and Operations “DevOps” is the term used to describe a more integrated and efficient model for development and delivery of applications • “Agile Development” paradigm • Continuous integration and test • Cloud delivery model for development, test and operations Continuous Integration Development 17 Operations
- 18. Addressing Application Lifecycle Management gaps Customers Dev & Test Teams Line of Business 2nd Gap 1st Gap Desire for fast and continuous innovation Requirements Code & Test Addressed by... Agile Dev 18 Operations Team Business Services Addressed by... Dev Ops
- 19. IDC on the impact of Cloud on Application Lifecycle Management 19
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- 21. IT Project and Portfolio Management software moving to the Cloud 21
- 22. In Summary… • Cloud Computing represents a permanent shift in the way IT services are developed and delivered • Cloud will be the basis for future enterprise application development, which will be in “SMAC” style – Social, Mobile, Analytics and Cloud • Consumer apps will drive Enterprise apps and thus user expectations will change accordingly, in terms of speed to market, mobile support, availability, etc • More and more enterprises will turn to SaaS applications vs In House development, adding new dimensions to IT Governance • IT Project and Portfolio management will need to adapt to this changing IT landscape through better tools, quicker development cycles, better integration between development and delivery Questions? [email protected] @rictelford on Twitter 22