Achieving the Private Cloud Business Payoff Fast

Nationwide Insurance eliminated both capital and operational expenditures through a private cloud and expects to save about $15 million over three years. In addition, it expects the more compact and efficient private cloud landscape to mean lower costs in the future.

The City of Honolulu turned to a private cloud and reduced application deployment time from one week to only hours. It also reduced the licensing cost of one database by 68%. Better still; a new property tax appraisal system resulted in $1.4 million of increased tax revenue in just three months.

The private cloud market, especially among larger enterprises, is strong and is expected to show a CAGR of 21.5% through 2015, according to research distributed by ReportLinker.com. Another report from Renub Research quotes analysts saving security is a big concern for enterprises that may be considering the use of public cloud. For such organizations, the private cloud represents an alternative with a tighter security model that would enable their IT managers to control the building, deployment and management of those privately owned, internal clouds.

Nationwide and Honolulu each built their private clouds on the IBM mainframe. From its introduction last August, IBM has aimed the zEC12 at cloud use cases, especially private clouds. The zEC12’s massive virtualization capabilities make it possible to handle private cloud environments consisting of thousands of distributed systems running Linux on zEC12.

One zEC12, notes IBM, can encompass the capacity of an entire multi-platform data center in a single system. The newest z also enables organizations to run conventional IT workloads and private cloud applications on one system.  Furthermore, if you are looking at a zEC12 coupled with the zBX (extension cabinet) you can have a multi-platform private cloud running Linux, Windows, and AIX workloads.  On a somewhat smaller scale, you can build a multi-platform private cloud using the IBM PureSystems machines.

Organizations everywhere are adopting private clouds.  The Open Data Center Alliance reports faster private cloud adoption than originally predicted. Over half its survey respondents will be running more than 40% of their IT operations in private clouds by 2015.

Mainframes make a particularly good private clouds choice.  Nationwide, the insurance company, initially planned to consolidate 3000 distributed servers to Linux virtual servers running on several z mainframes, creating a multi-platform private mainframe cloud optimized for its different workloads. The goal was to improve efficiency.

The key benefit: higher utilization and better economies of scale, effectively making the mainframes into a unified private cloud—a single set of resources, managed with the same tools but optimized for a variety of workloads. This eliminated both capital and operational expenditures and is expected to save about $15 million over three years. The more compact and efficient zEnterprise landscape also means low costs in the future too. Specifically, Nationwide is realizing an 80% reduction in power, cooling and floor space despite an application workload that is growing 30% annually, and practically all of it handled through the provisioning of new virtual servers on the existing mainframe footprint.

The City and County of Honolulu needed to increase government transparency by providing useful, timely data to its citizens. The goal was to boost citizen involvement, improve delivery of services, and increase the efficiency of city operations.

Honolulu built its cloud using an IFL engine running Linux on the city’s z10 EC machine. Between Linux and IBM z/VM the city created a customized cloud environment. This provided a scalable self-service platform on which city employees could develop open source applications, and it empowered the general public to create and deploy citizen-centric applications.

The results: reduction in application deployment time from one week to only hours and 68% lower licensing costs for one database. The resulting new property tax appraisal system increased tax revenue by $1.4 million in just three months.

You can do a similar multi-platform private cloud with IBM PureSystems. In either case the machines arrive ready for private cloud computing. Or else you can piece together x86 servers and components and do it yourself, which entails a lot more work, time, and risk.

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