Ibm And The Emerging Cloud-Computing Industry Case Study

ARMONK, N.Y. - 18 Dec 2014: IBM (NYSE: IBM) today announced that it radically simplified and made it easier for customers to enter into cloud computing services agreements by creating a standard, two-page agreement to replace longer, more complex contracts that typically  required long negotiations and reviews before a deal was signed. In comparison, IBM’s cloud competitors require customers to review and commit to more complex contracts that commonly are at least five times longer and also incorporate terms and conditions from other websites.

In recognition of this achievement, IBM received the 2014 Innovation Award for Operational Improvement from the International Association for Contract and Commercial Management (IACCM) for boldly and rapidly transforming its cloud computing contract process – an achievement that significantly improved the company’s ability to quickly serve cloud computing clients around the world.

“It’s ironic that cloud computing represents a faster and more innovative approach to doing business, yet lengthy and complex cloud business contracts from most vendors remain an obstacle,” said Neil Abrams, IBM Vice President and Assistant General Counsel. “By dramatically simplifying and accelerating how clients contract for cloud services, IBM is making it easier and faster for companies to reap the benefits of cloud.”

The award-winning operational improvement was achieved over the course of two months by a small team, and deployed globally for all of IBM’s cloud offerings. IBM's cloud services business and clients quickly benefited from the substantially simplified cloud contracting procedure. Clients have embraced IBM's new and innovative two-page cloud services agreement, which is easy to navigate and understand, dramatically reducing the time required to close a deal and for clients to enjoy the benefits of cloud.

IBM is the global leader in cloud computing with a diverse portfolio of open cloud solutions designed to enable clients for the hybrid cloud era with integration, control over data and expertise. IBM has helped more than 30,000 cloud clients around the world. Today, IBM has more than 100 cloud SaaS solutions, thousands of cloud experts with deep industry knowledge from helping clients transform, and a growing global network of cloud data centers.

Since 2007, IBM has invested more than $7 billion in 17 acquisitions to accelerate its cloud initiatives. IBM holds more than 1,560 cloud patents focused on driving innovation. IBM processes more than 5.5 million client transactions daily through IBM's public cloud.


The International Association for Contract & Commercial Management enables both public and private sector organizations and professionals to achieve world-class standards in their contracting and relationship management process and skills. With 30,840 members across 158 countries and 12,439 corporations, IACCM is leading the way in responding to the demands of global networked markets.

Armonk, N.Y. and Shanghai, China - 15 Nov 2007: In Shanghai today, IBM (NYSE: IBM) unveiled plans for “Blue Cloud,” a series of cloud computing offerings that will allow corporate data centers to operate more like the Internet by enabling computing across a distributed, globally accessible fabric of resources, rather than on local machines or remote server farms.

Blue Cloud, built on IBM’s expertise in leading massive-scale computing initiatives, will be based on open standards and open source software supported by IBM software, systems technology and services. IBM announced today that its Blue Cloud development is supported by more than 200 IBM Internet-scale researchers worldwide and targets clients who want to explore the extreme scale of cloud computing infrastructures quickly and easily.

IBM is currently collaborating on cloud computing initiatives with select corporations, universities, Internet-based enterprises and government agencies, including the Vietnamese Ministry of Science and Technology, which this week announced a cloud computing project with IBM.

IBM’s first Blue Cloud offerings are expected to be available to customers in the spring of 2008, supporting systems with Power and x86 processors. At an event in Shanghai today, IBM demonstrated how cloud computing technologies, running on IBM BladeCenters with Power and x86 processors and Tivoli service management software, dynamically provision and allocate resources as workloads fluctuate for an application. IBM also expects to offer a System z “mainframe” cloud environment in 2008, taking advantage of very large number of virtual machines supported by System z. IBM also plans to offer a cloud environment based on highly dense rack clusters.

Blue Cloud – based on IBM’s Almaden Research Center cloud infrastructure -- will include Xen and PowerVM virtualized Linux operating system images and Hadoop parallel workload scheduling. Blue Cloud is supported by IBM Tivoli software that manages servers to ensure optimal performance based on demand. This includes software that is capable of instantly provisioning resources across multiple servers to provide users with a seamless experience that speeds performance and ensures reliability even under the most demanding situations. Tivoli monitoring checks the health of the provisioned servers and makes sure they meet service level agreements.

“Blue Cloud will help our customers quickly establish a cloud computing environment to test and prototype Web 2.0 applications within their enterprise environment,” said Rod Adkins, Senior Vice President, Development and Manufacturing for IBM Systems & Technology Group. “Over time, this approach could help IT managers dramatically reduce the complexities and costs of managing scale-out infrastructures whose demands fluctuate.”

Cloud computing is an emerging approach to shared infrastructure in which large pools of systems are linked together to provide IT services. The need for such environments is fueled by dramatic growth in connected devices, real-time data streams, and the adoption of service oriented architectures and Web 2.0 applications, such as mashups, open collaboration, social networking and mobile commerce. Continuing advances in the performance of digital components has resulted in a massive increase in the scale of IT environments, driving the need to manage them as a unified cloud.

IBM is developing Blue Cloud to help clients take advantage of cloud computing, including the ability of cloud applications to integrate with their existing IT infrastructure via SOA-based Web services. Blue Cloud will particularly focus on the breakthroughs required in IT management simplification to ensure security, privacy, reliability, as well as high utilization and efficiency. Cloud computing is targeted for existing workloads and emerging massively scalable, data intensive workloads.

On November 13th, IBM and the Vietnamese Ministry of Science and Technology (MoST) announced an open innovation pilot program that would run on a cloud computing infrastructure.

“The Vietnam Information for Science and Technology Advance Innovation Portal (VIP), created with IBM, will help provide Vietnamese communities and residents a dynamic, rich content source and foster innovation among the citizens, communities and government organizations,” said Dr. Tran Quoc Thang, Vice Minister of MoST. “VIP will be based on IBM’s enterprise Web 2.0 Innovation Factory solution and made available to universities and research institutions through the cloud infrastructure at IBM’s Almaden Research Center.”

The Origins of Blue Cloud
The Blue Cloud concept grew out of work IBM did in support of its own software innovators with an IBM innovation portal called the Technology Adoption Program. IBM developers can request computing resources be provisioned with software to test and conduct trials on their innovations with IBM employees through the program.

“By providing a dynamic infrastructure environment to IBM innovators over the past several months, we gained valuable experience with cloud computing technologies,” said Dr. Willy Chiu, Vice President of the IBM High Performance on Demand Solutions team. “Our customers have expressed strong interest in deploying a similar solution when we speak with them about how much time we can save innovators in obtaining the hardware and software resources they need to bring their solutions to market.”

IBM and Massive Scale Computing
Blue Cloud represents the next major advance in computing that IBM is uniquely qualified to lead because it builds off of IBM’s decades of experience developing and leading massive-scale computing. These include:

  • Parallel Sysplex -- IBM System z mainframes that act together as a single system image, and combine data sharing and parallel computing to allow a cluster of systems to share a workload for high performance and high availability.
  • IBM’s Deep Blue SP Cluster – The predecessor to today’s cluster technology, IBM’s legendary Deep Blue system is best known for defeating chess Grand Master Garry Kasparov more than ten years ago.
  • Blue Gene – A network of massively powerful supercomputers that leverages open systems and massive numbers of very low cost, energy-efficient components. The next generation of Blue Gene -- Blue Gene/Q -- is expected to eventually achieve an operating speed of 10 to 30 PETAFLOPS, or thousands of trillions of floating point operations per second.
  • Grid Computing – Based on an open set of standards and protocols, including key Service Oriented Architecture standards, IBM was an early advocate and contributor to commercial Grid computing which enables the virtualization of distributed computing and data resources such as processing, network bandwidth and storage capacity to create a single system image, granting users and applications seamless access to vast IT capabilities.
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