How Hybrid IT Can Help Government Infuse Agility and Flexibility into Cloud and Traditional Infrastructure Joe Huertas, Executive Director for the State of Tennessee Rich Arita, NA Sales Leader for IBM

Rich Arita, Sales Leader IBM

Technology leaders are key in enabling their organizations to innovate and become more effective. As those in charge of IT strategy and the ecosystem that supports an enterprise, CIOs can be the sponsors and enablers of innovation that creates disruptive new value for customers Technology Leaders are in a unique position to infuse agility to the ecosystem of infrastructure, compliance policies, and enable Business Leaders to innovate and disrupt their industries.

What we hear from Tech Leaders on how they’re allocating their time and resources Sponsoring Innovation Building relationships across the organization and enabling business leaders to create new products and services with technology Managing Cost Optimizing the use of infrastructure, complexity of cloud sprawl and distribution of workloads across the entire IT ecosystem We have interviewed a few Tech Leaders and they told us that the role is fundamentally changing. A few years ago, CIOs, were IT Executives, focused on gatekeeping, cost savings, and internal operations, but today, CIOs are seen as Business Executive, and they are concerned with delivering the best business outcomes through technology. Instead of designing IT strategy, they have to design business strategy with IT at the core. However, the reality is that most of their time and resources are spent in the bottom of this pyramid: running the Enterprise IT Infrastructure, followed by Managing Cost, leaving only the remaining time and resources to Sponsoring innovation. Running Enterprise IT Establishing the right mix of cloud and traditional infrastructure required both to run the existing business and support innovation

Now, imagine if you could spend most of your time and resources sponsoring innovation Building relationships across the organization and enabling business leaders to get the most value from IT Managing Cost Optimizing the use of cloud, applications and workload migration across the entire IT ecosystem But this doesn’t need to be the case. Tech Leaders have to infuse agility and enable the enterprise to create disruptive new value for customers, by sponsoring Innovation, and building relationships across the organization and setting guidelines that allow business leaders to get the most value from IT. Running Enterprise IT Establishing the right mix of cloud and traditional infrastructure required to leverage and manage innovation

The ability to integrate services is critical to best leverage a Hybrid Cloud environment Brokerage Services Accessing a wide range of traditional IT, private cloud and multi-provider Cloud services with self- service consumption and simplified management that maximizes choice Enterprise IT as a Services can help Tech Leaders infuse agility and flexibility into the Cloud and Traditional Infrastructure by partnering with strategic service providers. Hybrid is the new norm, + IDC predicts that over 80% of enterprise IT organizations will commit to hybrid cloud architectures by 2017. + According to 500 enterprises that are already using hybrid cloud, 70% report they’ll always have a blend of traditional IT and cloud. And two-thirds of these organizations report they’re already gaining competitive advantage from their hybrid environments. ITaaS can help you: + Get the highest visibility and control over the Enterprise IT landscape + Deliver applications faster and scale infrastructure to meet all the digital demands of your enterprise + Reduce cost and manage risk by moving applications and infrastructure to the Cloud + So you can spend more of your time and resources in sponsoring innovation and partnering with business leaders to create disruptive new value Enterprise IT as a Service Partnering with an end-to-end services integrator to use standard building blocks to design, build and run the best mix of cloud and traditional IT

Leveraging Hybrid Cloud will make your enterprise more: Leveraging a Hybrid Cloud environment enables you to run every workload in its optimal place, at optimal cost… Leveraging Hybrid Cloud will make your enterprise more: Fast and flexible. Gives business leaders access to the broadest choice of platforms on which to build and deploy their apps at the speed required for business needs Value-driven. Better access to data and platforms across on-prem and cloud for your apps Secure and resilient. Apps can securely access the workloads and data that you need to keep on-prem to mitigate potential risks Cost-effective. Optimize your costs by migrating workloads that are best run in cloud while maximizing the value of your investments in existing on-prem IT High quality: Improve the quality of service through advanced analytics and automation in an end-to-end service-management model  Things that you can do on-prem that you wont on cloud

IBM Cloud Managed Services for z Systems can help: …with a configurable on-demand environment featuring the latest hardware and software and the ability to scale as needed Support current and new workloads for growth initiatives… Reduce capital and operating expenses with infrastructure savings up to 30 percent… …with a shared infrastructure, hosted in an IBM global data center and managed by IBM mainframe specialists …with a carefully designed solution that has security and availability features built in at all levels—from the data center to the hardware Support high availability and security requirements…

IBM Cloud Managed Services for z Systems Combine Flexible Capacity with Usage-Based Pricing What is IBM Cloud Managed Services for z Systems: Shared / multi-tenant, scalable IBM z/OS and zLinux mainframe capacity—offered as secured logical partitions (LPARs) within a continually refreshed, managed environment Cost-effective delivery model running client workloads in strategic IBM Service Delivery Centers High availability options for server, disk and tape Flexible software options IBM Cloud Managed Services for z Systems Benefits Cost reductions realized in our clients IBM System z computing infrastructure. Consumption based model. Flexibility and scalability designed to meet business needs. A shift from CAPEX to OPEX model Security-rich design with standard delivery, software and state-of-art technologies Managed services delivered by 6,500 IBM mainframe experts worldwide IBM Cloud Managed Services for z Systems combine flexible capacity with usage-based pricing

IBM Cloud Managed Services for z Systems Provides Support for Regulated Workloads IBM acting as a BAA can support a client’s regulatory controls while running in IBM Cloud Managed Services for z Systems IBM Cloud Managed Services for z Systems, combined with IBM managed services, offers a comprehensive set of security services, overarching the IT infrastructure IBM Cloud Managed Services for z Systems embodies traditional Mainframe architecture and security posture which remains well suited for regulated workloads Strict physical and operational security controls integrated into our cloud data centers IBM Cloud Managed Services for z Systems can be compliant with major industry and regulatory standards FTI 1075

Joe Huertas, Executive Director The State of Tennessee

State of Tennessee Mainframe Landscape Z9 IBM 2094-507 2,273 MIPS IBM 2105 Shark Storage (24 TB) STK 9840 Tape Library 35 Staff Members Largest Departmental Users Correction Human Services Revenue Treasury

The Mainframe Challenges Processor Performance Tape Environment Batch Window Data Security Operational Environment

Options Buy Lease Outsource

IBM Cloud Managed Services for z Systems The Solution BUY The past is the future. Choosing a model to achieve different results LEASE Learn from the present. Evolving a successful vehicle to achieve broader goals Outsource, Our Chosen Path. IBM Cloud Managed Services for z Systems Hardware: The last power down for the Mainframe in Nashville Software: The State exits the software license management role Staff: Walking across the bridge

Implementation Transition Readying for a new partner Introducing IBM to staff Focus on people Introduction to IBM processes and procedures Transformation Readying for a journey to a new destination Incremental approach Managing risk Executive Steering Committee Identifying Key Stakeholder Members Overview of the program

Implementation Project Streams Managing the Work Transition Transformation Go-Live Leveraging Customer Departments Reporting Communication

Implementation - Lessons Learned Project Streams Managing the Work Transition Transformation Go-Live Leveraging Customer Departments Reporting Communication

On-Going Operations Production Control Change Management Reporting Communication Modernization & Continual Improvement

On Going Operations – Lessons Learned Production Control Change Management Reporting Communication Modernization & Continual Improvement

The Broader Theme People Process Technology

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