Main tent Sept 2012 presentation IBM Global Consultants / System Integrators conference - "Disruptive Innovation in the Modern IT World". This entertaining, fast-paced keynote provides an overall IT industry-wide look (not just Storage only) at Disruptive Innovation in Today's Modern IT World. We'll examine how, what, and where 2012 Internet Scale, Big Data, Mobile Disruptive Innovation is occurring, project how this will affect all in 2013 and beyond. Insightful examination/examples into how Disruptive Innovation works, thus putting clarity into why today's massive change in fabric of IT infrastructure, IT skills, and the *business models* is occurring in the blending of traditional IT with consumerization of IT, mobile devices, tablets, broadband wireless, real-time computing capabilities, real time Big Data modern analytics, and internet scale workloads. You'll come away with clarity and answers to: "What do I need to know about 2012 Disruptive Innovation in Modern IT? How will consumerization of IT, mobile technology, high performance Big Data analytics, and data center design affect by IT?" "What does this mean for my IT infrastructure and my IT staff job skills?" "What are innovative IT customers deploying today to provide competitive advantage?" "What technologies, workloads, innovation, and the job skills will be demanded in 2012 and beyond?" When referencing this material, my only request is that you give full credit to me and IBM as the authors of the research, and use the material with good business judgement. That having been said, please spread the good word. In today's internet global world, wise collaboration is how we all will thrive... .and how we as a human race will successfully address the challenges facing our collective future and our planet.

1. Disruptive Innovation in Modern IT World
USA perspective
John Sing, Executive Strategy Consultant, IBM
Let’s compare with
India perspective
video 1

2. John • 31 years of experience with IBM in high end servers, storage, and
software
Sing – 2009 - Present: IBM Executive Strategy Consultant: IT Strategy and Planning, Enterprise
Large Scale Storage, Internet Scale Workloads and Data Center Design, Big Data Analytics,
HA/DR/BC
– 2002-2008: IBM IT Data Center Strategy, Large Scale Systems, Business Continuity,
HA/DR/BC, IBM Storage
– 1998-2001: IBM Storage Subsystems Group - Enterprise Storage Server Marketing
Manager, Planner for ESS Copy Services (FlashCopy, PPRC, XRC, Metro Mirror, Global
Mirror)
– 1994-1998: IBM Hong Kong, IBM China Marketing Specialist for High-End Storage
– 1989-1994: IBM USA Systems Center Specialist for High-End S/390 processors
– 1982-1989: IBM USA Marketing Specialist for S/370, S/390 customers (including VSE and
VSE/ESA)
• singj@us.ibm.com
• IBM colleagues may access my webpage:
– http://snjgsa.ibm.com/~singj/
• You may follow my daily IT research blog
– http://www.delicious.com/atsf_arizona
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3. Disclaimer:
Today’s presentation is a continuously evolving research document
• The purpose of this presentation is to educate, inform, and raise awareness
• On the important topic of :
– What is going as of this point in 2012 in the area of Big Data, Internet Scale Data
Centers, Disruptive Innovation
• All information sources are in the public domain
• All information sources are clearly documented and WWW URLs provided
• This document is meant as a reference document, continuously evolving, for you to
enlarge and expand your own research and awareness. The observation’s are the
author’s alone and not necessarily the official opinion of IBM.
• Illustrative examples are derived solely from generally available published analyst and
journalist opinions. No express IBM endorsement is implied or intended.
• Conclusive business case judgments and business actions should be made on the basis
of your own research and verification. This information is provided for your
professional and educational awareness.
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4. Inter-
Agenda Disciplinary
1. Exploiting the opportunity: Data, Data, Data!
 Real-time Data Factories
 Bandwidth created “The Cloud”
 Internet Scale Data Center architectures house internet scale
data
-disciplinary
2. Disruptive Innovation in Today’s IT World
 The Non-Traditional Competitor
 The mobile Web 3.0
3. Principles, collaboration for a successful IT Future
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5. Part 1: Exploiting the Opportunity: Data! Data! Data!
1. Exploiting the Opportunity: Data, Data, Data!
 Real-time Data Factories
 Bandwidth created “The Cloud”
 Internet Scale Data Center Architectures house internet scale data
5

6. The nature of workloads is rapidly shifting….
Rapid unstructured data growth
Unstructured
data workloads
=
Traditional
OLTP,
database
6

7. Humans collecting useful data on massive scale
7

8. We are building real-time, integrated stream computing on massive scale
Inter-
Disciplinary
n d
8

9. IBM Predictive Analytics: Movement in a City
•10 minute-ahead volume forecast (blue) vs. actual •10 minute-ahead speed forecast (blue) vs. actual
value (black) value (black).
Blue line: IBM analytics prediction 10 minutes in advance
Black line: actual result
9

10. IBM Predictive Analytics Ensuring Public Safety: video
Memphis Blue CRUSH Map
Memphis Blue CRUSH Map
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11. A new class of data-rich industries is emerging
New business models: company’s value based on amount of information stored, exploited
Today’s Hyperscale
Tomorrow’s Hyperscale Data Companies
Data Companies
Industries Examples
Aerospace
3.5 PB in 2010
Banking Healthcare 1 TB CT scanner → 2.5 PB/Year/Scanner
Energy Provider
Government
Healthcare Claims 20 PB in 2011
Grow 300 TB per month, every month
Insurance Processor
Manufacturing
Media and
Entertainment
Retail
11
11

12. McKinsey Global Report on Big Data – May 2011
Number of Big Data
scientists and mgrs
needed in USA
12

13. Will Big Data Change the Way We Compete? Already Has!
Healthcare
Finance
Ease of
capture Information
Value
13

14. The Big Data opportunity is huge
2015: # networked devices 2x
9000 global population
8000 100
Global Data Volume in Exabytes
7000 90
Total # social media accounts >
Aggregate Uncertainty %
80
6000
70
global population.
s)
5000
of r s
in g
rn nso
60
Th
e
4000
S
50
et
te
(In
3000 40
ia )
M ed d text
2000
30 i a l an
S ,oc audio
20 eo P
1000 (vid VoI
10
0 Enterprise Data
Multiple sources: IDC,Cisco
2005 2010 2015
14 14

15. Inter-
Disciplinary
Worldwide, Broadband Internet Speeds are Zooming
15

16. State of worldwide Internet:
average Internet user connection speed
http://www.de-cix.net/about/statistics/
End user average
connection speed
16

17. Growth of
The Cloud
by 2014
• Mobile
• Geo-locational
• Real-time data
• Shift to cloud
mega-data
centers
Source:
http://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns1175/Cloud_Index_White_Paper.html
17

18. How Big is the World? - 1
Cheaper
Network 7.1x
Storage 5.7x
Admins 7.3x
This is significant
http://wikibon.org/blog/how-big-is-the-world-of-cloud-computing-infographic/
18

19. Bandwidth Availability created “The Cloud”…………
• Worldwide bandwidth
• Pervasive web services delivery model
– (i.e. “The Cloud”)
• Data centers with massive amounts:
– Processors
– Storage
– Network
19

20. Bandwidth and the Cloud…..
• Internet-scale centers…..
• Data:
– 10s / 100s petabytes
• Servers:
– 100,000s ….
• Workloads:
– Require server clusters
of 100s, 1000s, 10,000,
more …..
20

21. http://wikibon.org/blog/wp-content/uploads/2011/10/5-top-data-centers.html
21

22. Large Data Centers in past 2 years
10. SUPERNAP, LAS VEGAS, 407,000 SF
9A and 9B. MICROSOFT QUINCY AND SAN ANTONIO DATA CENTERS, 470,000 S
22

23. Container Data Center Architecture 7. PHOENIX ONE, PHOENIX, ARIZ. 538,000 SF
Microsoft’s Chicago
Container Data Center
5. MICROSOFT CHICAGO DATA CENTER, Chicago 700,000 SF
2. QTS METRO DATA CENTER, ATLANTA, 990,000 SF
23

24. More data centers….
3. NAP OF THE AMERICAS,
MIAMI, 750,000 SF
4. NEXT GENERATION DATA EU
1. 350 EAST CERMAK, CHICAGO,
24

25. 2012: Other large world data centers
Tulip Telecom, India, Bangalore
Amadeus, Erding, Germany
China to build 6.2 M sq feet data center by 2016
Utah Data Center, US Govt, 1M sq feet
25

26. That’s Big!
Now….. what about the web giants?
• i.e. Apple, Facebook, Google, Amazon, etc?
26

27. Here’s what powers iCloud, see Jobs at WWDC 2011 iCloud announce (YouTube)
Apple
iCloud
Apple Apple Data Center Newark, California
Data Center
FAQ
Rendering of Apple's new North Carolina Data Center. Credit: Apple
Maiden, Under construction: Prineville, Oregon
North Carolina
500K sq ft
USD $1Billion
27

28. Facebook
Lulea, Sweden - 290K sq ft (27K sq me
28

29. Amazon Web Services
905 billion
450,000 objects
servers
650K
req/sec
EC2 17K core, 240 teraflop cluster
Amazon Web Services 1Q12: 450,000 servers 42nd fastest supercomputer in world
Amazon Perdix Modular Datacenter
29

30. Inter-
What is Google? Google is not a search engine Disciplinary
Google is a real-time “Data Factory” ecosystem
– Defacto organizer of all human internet data
– Worldwide Patterns of Life data
– Android ingest / output devices
• Motorola Wireless acquired $12B
– Supporting businesses and ecosystem roles:
• Google+, Play, Shop, Books, Gmail, Docs
• Voice recognition
The history of search engine http://www.wordstream.com/articles/internet-search-engines-history
30

31. Google
Data Centers
in 2008:
31

32. Google Data Center CAPEX worldwide Each data center
between $200M and
$600M
• Capital expenditures on datacenters:
– 1Q12: USD$ 607M
– 2011: USD$ 3.4B
– 2010: USD$ 4.0B
– 2009: USD$ 809M
The Dalles, Oregon
32

33. Part 2: Disruptive Innovation
2. Disruptive Innovation in Today’s IT World
 The Non-Traditional Competitor
 Big Data, mobile Web 3.0
33

34. With all this opportunity……. Why is this Disruptive Change
flat-lining traditional consumer PC / desktop manufacturers?
• PC / laptop stalwarts
• Unsuccessful in shift
• To mobile
Cloud / mobile
market value
*bigger increases*
not azl ai pa Ct ekr a M
PC/laptop
market value
big decreases
i i t
http://gigaom.com/2012/09/01/hp-dell-and-the-paradox-of-the-disrupted/
34

35. Inter-
Observe: how fast mobile internet grows by 2014 Disciplinary
• By 2014:
• Mobile will be
main way
• Of connecting
to Internet
35

36. Disruptive Innovation Clayton Christensen
Harvard Business School
Definition:
• Create new
market and
value
• Eventually
disrupts existing
• Displaces earlier
technology
36

37. Disruptive Innovation Clayton Christensen
Harvard Business School
• Not “advanced
technologies”
• Inferior yet “good
enough”
• Novel combinations
• Starts low end
• Grows up-market
– “low end
disruption”
37

38. Disruptive Innovation
• Learn
lessons
• Watch
today’s
world
Illustrative examples only
38

39. Disruptive Innovation Clayton Christensen
Harvard Business School
• “Consumerization”
• Not just technology
• Delivery models
(cloud)
• Business models
• Ecosystems
39

40. Mobile will affect all business models…
Mobile =
Geo-locational superfood
Real-time analytics
40

41. Cloud-scale Data Centers required for:
Data Supertransformagicability
TaxiWiz
HousingMaps
Weatherbug
Source: http://mashable.com/2007/07/11/google-maps-mashups-2/ 41

42. By 2016, how much mobile data? What kind?
• 2012:
– Mobile-connected
devices > # people
Smartphones
48%
• 2016:
– 10 billion mobile devices
Web data,
– (world population: 7.3 B) video
70%
http://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns827/white_paper_c11-520862.html
42

43. Will Big Data, Internet Cloud data centers, mobile-centric
business models affect the way we compete? Implement IT?
Yes, it will!
Let’s see one more video
43

44. Disruptive Innovation Clayton Christensen
Harvard Business School
Inter-
• Big Data / Cloud on Disciplinary
disruptive path
• Traditional IT still
around but….
• Newer technologies
disrupt all
platforms
What will the effect be on
your business model?
44

45. It’s NOT your Traditional competitors you need worry about
2011: 24 million
Netflix customers
Blockbuster
2002:
“Online video not
viable”
“Niche market”
2010:
Blockbuster files
for bankruptcy
45

46. It’s NOT your Traditional competitors you need worry about
Illustrative examples only
46

47. Today, customers have many non-traditional alternatives
Traditional alternatives: • Non-traditional alternatives:
– The Cloud, the Developing World
• Other platforms
• Other vendors
What will the effect be on
your business model?
47

48. Part 3: Principles for a successful IT
Future
Plans
Meld / meet / build readiness
Use, exploit, thrive
48

49. Big Positioning picture
e gar o s, r evr es/ $
BP, BT, B G : d qer e gar o S
t
t
’
Traditional Data Big Traditional Data Big
IT Warehouse Data, IT Warehouse Data,
Internet Internet
scale scale
49

50. Big Positioning picture Current IT
architectures
Growth areas
Current Mobile, Cloud
IT
architectures
e ga o t s. r evr es/ $
Growth areas
BP, BT, B G : d qer e gar o S
t
Mobile, Cloud r
’
Traditional Data Big Traditional Data Big
IT Warehouse Data IT Warehouse Data
Internet Internet
scale scale
50

51. Build new, different skill sets Current IT
architectures
Traditional IT
workload
Current IT
architectures
e gar o s, r evr es/ $
Highly parallelized internet
scale architecture
BP, BT, B G : d qer e gar o S
t
Integrated E2E softwaret
centric
’
Traditional Data Big Traditional Data Big
IT Warehouse Data IT Warehouse Data
Internet Internet
scale scale
51

52. Key strategy Current IT
architectures Traditional IT
architectures
• Continue modernize
current traditional IT
… Architect
new-gen
connectors,
• Architect future skills
expandability
e gar o s, r evr es/ $
• Connect with Internet scale
architectures
– New generation t
mobile-enabled
workloads Traditional Data Big
IT Warehouse Data
Internet
scale
52

53. To successfully co-exist / thrive with new generation workloads
Views new gen
• Understand Big Data / new as powerful
partner
gen workload environment Traditional IT
architectures
• Successfully innovate new
capabilities
• Expand your understanding
r evr es/ $
Views
Internet scale traditional IT
architectures
as powerful
• Be the change you want your enabler
company to be Traditional Data Big
IT Warehouse Data
Internet
scale
53

54. Inter-
How to get ahead and thrive in this new world? Disciplinary
• 2012: devote 1st hour of day to keeping
current
– No longer optional
• Establish power-knowledge digital footprint,
intelligently sharing what you find
– Don’t email what you find (too much email
already)
– Use social networking, social bookmarking,
blogs, etc
• Become a power user of your smartphone’s
ecosystem
54

55. • My external sources, daily IT research:
Keeping – http://delicious.com/atsf_arizona
Current
John Sing’s
bookmarks

– http://www.linkedin.com/in/johnsing
– https://www.facebook.com/john.sing1
• IBM colleagues may also see my IBM Intranet webpage:
– http://snjgsa.ibm.com/~singj/
– http://snjgsa.ibm.com/~singj/public/sonas_index.html
• singj@us.ibm.com
55

56. Inter-
Learning Points Disciplinary
1. Exploitation of the opportunity: Data, Data, Data!
 Is being done in real-time Data Factories on internet scale today
 Bandwidth will continue to create “The Cloud”
 Must understand and study how Internet Scale Data Center
architectures house internet scale data
-disciplinary
2. Hyper-pace of Disruptive Innovation in Today’s IT World
 Beware the Non-Traditional Competitor
 The Mobile Web 3.0 is already impacting all business models
3. Invest your 1st hour of every day in being a part of the future
 Be the change you want your company to be
56

57. Inter-
Inter-disciplinary
Current IT
Traditional IT
Disciplinary
Disruptive Innovation: New gen
workloads
r evr es/ $
Greatest opportunity to Internet scale
workloads
thrive we have yet seen
disciplinary
Inter-
Traditional Data Big
IT Warehouse Data
Internet
scale
Big Data
Identify inter-disciplinary new Applications Exascale datacenters
generation workloads, business models Cloud  Massive parallelism
Business
Models  E2E automation Mobile
Know non-traditional competitors well
Develop / implement to meld, meet, use,
exploit, thrive with new reality
57

58. Together, let’s build a Smarter Planet
58