1. Grid Computing in the Enterprise Creating I/T and Business Value
Yann Guerin
IBM Grid Computing
EMEA Technical Director

3. On Demand Business
An on demand business is an enterprise whose business processes — integrated end-to-end across the company and with key partners, suppliers and customers — can respond with speed to any customer demand, market opportunity or external threat.
In October 2003 when IBM made the On Demand Business announcement we identified business would continue to need to focus on technology but not for technology’s sake. More and more technology was becoming the difference maker in enabling new ways of doing business. We described organizations that used technology this was as On Demand Businesses and for those who made that journey would enable new levels of innovation while continuing to deliver the increases in productivity that are necessary to improve the bottom line.
We created this definition to clearly identify this was not about what any one company or supplier sold but about what a organization would need become. It was about an new definition or DNA for the whole organization. When an enterprise has business processes that have been integrated end to end – across the company and with key partners, suppliers and customers – it really does have the ability to respond to any customer demand, market opportunity or external threat.
As we work with hundred of organization on their journey to becoming an On Demand Business we can see three insights that seem to be common all these organizations.
Firstly they needed to look at how they could componentized their business to create the flexibility and innovation in their overall business and its processes
Then they would need ensure their applications, like their business, would become increasingly modular.
Finally, without IT Simplification their underlying infrastructure would never be able to support the changes their business needs.
Transition to next chart: While IBM has solutions for componentization and application modularity, today we are going to focus on the need for IT Simplification
Insights about becoming an On Demand Business:
Increased componentization of the overall business and its processes
Applications becoming increasingly modular
Need for IT Simplification of the underlying infrastructure.

4. Simplifying IT Through Infrastructure Management
Sense and respond to changes, manage and optimize for the needs of the business through Automation and Virtualization of your IT environment
Source: e-business on demand attributes and capabilities study, IBM 2003
Major Points:
The three keys to on demand Automation are:
Operational processes
Business policy (or governance)
Sense and respond
On Demand Automation drives down costs, improves productivity, and increases flexibility
Customer value is provided each step of the on demand automation journey
Talking points:
What is on demand Automation ? : Here on this slide is a straight forward definition
Three competitive advantages to remember - on demand Automation involves:
Operational “processes”
Business policy or governance -> Analysts like Gartner and META are adapting the term ‘governance’
Sense and respond  Autonomic Technology
IT must optimize resources and manage complexity, bringing their systems in line with business goals
Automating IT processes helps our clients meet the needs of the their businesses by making the IT organization more responsive to evolving business priorities.
Our clients are facing new challenges in the on demand world and IT must stay ahead of these challenges:
Only 15% resources are utilized today
92% of processes are done manually
51% have flexibility as top priority
80% IT effort spent on diagnosis
47% indicate automating core processes is critical
72% have manual service level agreements
sources: ebusiness on demand Attributes-Capabilities Study, Autonomic Study, Blueprint Market Drivers Study, Tivoli Customer Study
Reduced cost and Increased productivity
Improved service delivery
And adaptability to changes in business needs
Transition: How do you get these values? -- With a set of core Automation Capabilities.
Helps reduce complexity
Helps Reduce Cost and Increase Productivity
Increases Business Flexibility to Support Change & Innovation
Improves Service Levels (QoS)
Virtualization
Automation
Delivering IT Simplification through enterprise-wide fabrics, Grids and the virtualization of internal and external resources
Increase flexibility and reduce costs by automating your IT best practices and extend across process disciplines and resources

5. Grid Computing is about virtualizing and sharing resources
Storage
I/O
Operating System
Information
Processing
Data
Applications
Grids create a virtualized data center: Grids tie together resources across geographical boundaries, organizational boundaries, and system types.
Distributed computing based on open standards

6. Virtualization Solutions Stages of Deployment
Virtualize Outside the Enterprise
Virtualize the Enterprise
Suppliers, partners, customers and external resources
Virtualize Unlike Resources
Enterprise wide Grids, Information Insight, and Global Fabrics
Virtualize Like Resources
Cluster
Heterogeneous systems,
storage, and networks;
Application-based Grids
Single System
(Partitioning)
Homogenous systems, storage, and networks
Homogenous
Single Organization
Tightly Coupled
Heterogeneous
Multiple Organizations
Loosely Coupled

7. Realizing Increasing Levels of Business Value
Virtualize Outside the Enterprise
Virtualize the Enterprise
IT Simplification for
Enterprise Optimization
Asset Utilization
Workload Prioritization
Virtualize Unlike Resources
Infrastructure Flexibility
Enabling
Business Resiliency
Virtualize Like Resources
Cluster
Aggregating Information
Business Insight
and
Collaboration
Single System
(Partitioning)
Application Acceleration
Time to Results
and
Higher Quality

8. Why is IT Simplification so important?
Cost of mgmt. & admin. 10% CAGR $0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
1996
’97
’98
’99
2000
’01
’02
’03
’04
’05
’06
’07
’08
New server spending (USM$) 3% CAGR
Spending
(USB$) 5 10 15 20 25 30 35
Installed Base
(M Units)
Cost of People vs. Spending on new systems*
*Source: IDC, On-Demand Enterprises and Utility Computing: A Current Market Assessment and Outlook, IDC #31513, July 2004.
“Data centers have become so fragile that administrators are fearful to touch the existing infrastructure, since any changes may set off a series of events that can bring a company to its knees. Consequently, many enterprises are restricted in deploying innovative applications that could potentially create competitive advantage.”
The Yankee Group***
January 5, 2005
***Source: The Yankee Group, Considerable Savings Are Possible Using Grid Computing and Virtualization Technologies, Research Notes, Corsello, Jason. January 2005.
52%
N/A
Storage
2-5%
5-10%
30%
Intel-based
<10%
10-15%
50-70%
UNIX
60%
70%
85-100%
Mainframes
24-hour Period Utilization
Prime-shift Utilization
Peak-hour Utilization
** Source: IBM Scorpion White Paper: Simplifying the Corporate IT Infrastructure 2000
Why is IT Simplification so important?
Message: Virtualization aims at reducing the number of servers thus the immediate involved support cost, at facilitating access to distributed server capacity thus boosting mutualization of resources and utilization ratio and finally reduce distributed systems management complexity.
Start with what we learnt from various studies:
- Tremendous expansion in the number of server units shippe, reversed HW/Support cost ratio over time
- Siloed implementation leading to underutilization
- Complexity of overall infrastructure management.

9. Characteristics of Grid Evolution
Virtualize Outside the Enterprise
Virtualize the Enterprise
Multiple Organizations
Meta-scheduling
Workload Prioritization
SLA Attainment
Orchestration
Information On Demand
Virtualize Unlike Resources
Virtualize Like Resources
Cluster
Advanced Scheduling
Multiple Apps/Resources
Integrated Security
Provisioning
Workload Management
Information Virtualization
Single System
(Partitioning)
Cluster Scheduling
Single Application
Homogenous
Storage/File Virtualization

10. IBM’s Breadth of Capabilities
IBM Global Services
Deep Computing on demand Centers
IBM Research
Business
Partners
IBM
Grid
Computing
IBM
Products
IBM Grid Toolbox
Design Centers for On Demand Business
Open Standards

11. IBM Research - Grid Computing Institute
Currently working on thirteen (13) different Grid Research projects
Systems
Management
Resource Scheduling
and
Deployment
Application Development
Frameworks, Tools
Networking
IBM Research
Security
Grid Valuation
and
Economic Models
Information
Grids &
File Systems
2003
IBM will announce the Research led Grid Computing Institute before the end of 2003.
In order for commercial adoption to proceed, IBM must address core technology and solution areas (i.e. systems management, security, networking, license management, etc.)
We’re solution focused in our go-to-market, but we recognize there are core technology areas that need to be developed and refined. Going deep.
The Institute is a way to assure Research grid projects in 2004 and beyond address the strategic needs of the grid business.
2004
Formal management system aligning product development, research, and the grid EBO (strategy & sales) team.
A steering committee will address the investment and research directions in 2004.
Systems management, information grids, and application development frameworks are likely to be primary thrusts in 2004 of the Institute.
IBM
Hardware &
Software
Products
IBM
Grid Computing
Customers

12. Across the Spectrum: IBM Customer References
Virtualize Outside the Enterprise
Virtualize the Enterprise
Vrtualize Unlike Resources
Virtualize Like Resources
Cluster
Single System
(Partitioning)
National Digital
Mammography Archive

13. EMEA IBM Grid Network Research Product Development Solution Design
Adopters Support
Hursley Lab
& Innovation Center
Boeblingen Lab
Zurich Research
Montpellier
Grid Design Center
La Gaude
Solutions Center
Haifa Research

14. IBM Commitment and Focus
Open Standards
R&D and investments in grid and related technologies
Industry-leading partners
Multiplatform experience and expertise
Worldwide services practice for Grid Computing
Focus
Industry-specific offerings
Product development roadmaps
Building an ecosystem
Implementing grids for over 100 commercial and public organizations
Integrated solutions: Services, Software, Hardware and Partners