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IBM - Cloud Computing

Page history last edited by Dick Saunders 15 years, 1 month ago

IBM Exec Bursting With Plans For Cloud

 

By J. BONASIA, INVESTOR'S BUSINESS DAILY

Feb. 10, 2009

 

 

The rapid rise of cloud computing has prodded IBM  (IBM) to launch a new business unit.

On Tuesday, IBM was set to announce Erich Clementi as head of a new enterprise initiatives unit. His team will coordinate the IBM Blue Cloud initiative.

Cloud computing refers to delivering applications, computing power and data storage as Web-based services, much like utilities deliver electricity or water. The cloud approach can give information technology users more flexibility and economies of scale.

Clementi spoke with IBD about his new role.

IBD: How do you define cloud computing, and how can IBM capitalize on it?

Clementi: The cloud is a new way of consuming and delivering IT as a service. All of us use it today when we use GPS (services) in the car. In reality, that GPS system has to react with something in the cloud in order to work. Or when we save photos on the Internet, we're using the cloud.

What's different here is IBM is bringing this kind of cloud to the enterprise. That's more complex.

IBD: What's so different about cloud computing for businesses and other enterprise customers?

Clementi: If you deliver the cloud as a service, you need to combine the hardware technology and software technology and business services. We (IBM) have all of those units. Now, my organization is in charge of pulling together all of this value and integrating it. We are basically the cloud group that touches all parts of the company.

IBD: On Monday, IBM unveiled more information on its plans to offer services and products for a "smarter" global infrastructure, tied to the use of sensors and ubiquitous computer networks. How is this IBM cloud initiative tied to that vision?

Clementi: Here is the connection: If you think about today's existing infrastructure, it is not yet built for these new types of computing.

For some reference point, let's talk about electric grid meters that get read once per month. With a smart grid, the electric meter in all households and companies gets read every 10 minutes. To do that, you need a much greater infrastructure and intelligence built into the network. For another example, think of when we (will some day) store all our medical records online, or when millions are using mobile phones to do payments. Or what if you assume we introduce (radio frequency ID) tags to track all the food in our supply chain. When you think about this, you see the whole infrastructure needs an enormous upgrade.

IBD: But that upgrade will be at an enormous cost. How can the cloud help make such changes viable?

Clementi: The cloud is connected to this idea to make it economical, because the cloud involves a shared infrastructure. Second, the cloud is standardized. When things are shared and standardized, you get a much higher utilization of your hardware and capital costs. This leads to better operational costs and it frees up budgets for other projects. All of that is not to forget the (increased) energy efficiency.

IBD: Early cloud promoters include the Web-based firms Amazon.com (AMZN), Google (GOOG) and Salesforce.com (CRM). Now, traditional IBM rivals such as Computer Sciences Corp. (CSC), Sun Microsystems (JAVA) and others are getting active. What are IBM's advantages and challenges in this crowded market?

Clementi: The cloud offers a lot of ease of use through the consumer world, and that's why we see those Internet companies playing on this field. Now, playing on the enterprise side is a little bit different. You might be perfectly comfortable to have your family pictures on the Internet, but less comfortable to have your private documents stored in the cloud.

So the enterprise requirement, in terms of security and reliability and protectedness, is different. This is why more traditional players are moving to this model.

Here is why I believe IBM has a huge opportunity to lead: Unlike the competition, IBM services are always an integrated value proposition. They are pre-integrated, so we don't ask a client to buy the pieces and put them together. We help them put it all together.

When you look at the technology enablers of the cloud — such as (software) virtualization, a service-oriented architecture, and greater automation — IBM has honed many of these technologies, and we've even invented many of them.

IBD: How will your team work within the larger IBM?

Clementi: My platform team has some of the brightest minds in IBM who reach into our research, hardware and software groups. They're creating the standards and technologies and level of integration we'll need for our cloud platform. The second team will develop those offerings, and all of the business models and terms and conditions we'll need to go to market.

IBD: After 25 years at IBM, how do you view the significance of cloud computing?

Clementi: This is a major shift. This is going to be disruptive because it is the establishment of the Internet as a computing platform — not just as a format for getting content and downloads.

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