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IBM Global Business Services White Paper

Cloud Computing

Cloud Computing for Automotive

Cloud Computing for Automotive

The automotive industry is focused on making the most of global operations, globalizing products and brands and deeply changing the mix of capabilities, knowledge and assets. As automotive companies add new capabilities and enter new market segments, they face increased challenges: ever-growing complexity and the cost of managing IT assets. In this dynamic new age, we believe, deployment of information technology using cloud constructs will be the key to success over the next decade. This paper addresses two fundamental questions related to cloud technology for companies that desire to build a proactive approach to dealing with this dynamic new age within the automotive industry. 1. What is the best way to explore cloud computing technology that delivers the functions necessary to improve efficiency, reduce cost or produce new capabilities? 2. Which applications, services and technologies should be considered for development and deployment within the cloud in order to meet the goals of the extended automotive enterprise? One of the key findings of this paper is that there are many mature technologies and best practices already available that can be readily deployed using cloud computing.

Industry trends
In order to be successful, automotive companies need to work effectively internally and throughout their value chain by making best use of relevant cloud technologies. Industry boundaries are vanishing; automotive companies now need to be comfortable and thrive in a new ecosystem one in which they have interdependent partnerships both within the traditional industry and throughout industries. Other industries that have limited experience working with automotive companies (such as government, telecommunications, electronics and energy) will be crucial in the effort to achieve the vision of a smarter planet. Through the online communities, social networks and vehicle connectivity provided by cloud technologies, the automotive industry will also be able to form closer relationships with the consumer. The convergence of these previously disparate industries with the consumer represents a new world that every successful automotive company must learn to embrace. Realistically, these industries run at different rates with different product life cycles and with different rates of innovation. They may have competing priorities and may have limited experience working with each other. Automotive companies must determine how they will stake their claim to the revenue that these activities will generate. These observations on industry trends can now be fulfilled with cloud technology constructs which can be deployed using mechanisms that include Business Process as a Service, Software as a Services, Platform as a Service and Infrastructure as a Service.

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Connected vehicles
The vehicle of 2020 will be a communications wonder. As another node on the Internet cloud, the vehicle of the future will connect with other vehicles, with the transportation infrastructure and with homes, businesses and other sources. Innovation will emerge mostly from software, electrical systems, sensors and driver-assistance services that improve safety and the overall driving experience while a new level of owner/vehicle personalization and customization is delivered. Traditional focal areas such as powertrain, body design and interiors remain important, but will be joined in the future by sensing capabilities, software and wireless communications which will enable the vehicle to detect road conditions, recognize other vehicles (and pedestrians) near its space and sense environmental changes. The vehicle will then have the capability to either self-correct or communicate information back to the driver.

Cloud connectivity will make it possible for vehicles to respond to developing traffic situations, find alternate routes and anticipate impending collisions. Overall, the connected vehicle will enhance the driving experience in three specific areas that will open many new capabilities for safety (real time access to driving conditions and emergency situations), driver assistance (personalization of the driving experience) and more convenient service (real-time remote diagnostics and the automatic delivery of software patches).

Greener vehicles
In the IBM study titled The Greening of Government: A Study of How Governments Define the Green Agenda, aggregate responses from industry and government executives cited the top three green government priorities worldwide today: green buildings, green transportation and green procurement all of them associated with energy reduction capabilities that hinge on cloud technology for analysis and deployment. A key element of green transportation is the use of innovative new technologies to ease urban traffic emissions.

Cloud Computing for Automotive

The automotive industry will launch dozens of new plug-in hybrid and battery electric vehicles as it begins the gradual process of moving away from petroleum-based fuels and towards battery power. Battery power will make possible the widespread deployment of electric vehicles, greatly reducing the United States dependence on foreign oil. IBM is collaborating with universities and the U.S. Department of Energy labs to research battery technology. The mission of the collaborative project at IBM is to use cloud technology to push energy technology aggressively by exploring the outer limits and capabilities of chemical energy storage systems. Smart grid technology also plays a major role in automotive electrification. Vehicle-to-grid describes a system in which electric or plug-in hybrid vehicles use cloud computing technologies to communicate with the power grid in order to sell demand response services either by delivering electricity into the grid or by throttling their charging rate.

Compute environment
The automotive industry is faced with many challenges in the IT computing environment. Data center demand for computing capabilities continues to increase as organizations operate business processes, perform engineering simulations and provide business analytics. Storage needs are growing exponentially to handle the increased volume of data being created through activities such as computer-created designs and crash test simulations. Storage cloud technologies can help automotive companies address their storage needs. Energy consumption has put data centers at a tipping point. The need to obtain the necessary power and cooling to handle the increasing computing demands has become a serious consideration, and is altering long-held cost dynamics. Data centers energy use is doubling every five years.1 Global electricity prices are increasing 10 to 25 percent per year.2 In 1965, Intel co-founder Gordon Moore made a prediction popularly known as Moores Law, which states that the number of transistors on a chip will double about every two years.3 The computer industry has kept that pace for nearly 40 years. Technology densities have grown 20 times just in this decade.4 Data centers have clearly not increased their power and cooling capacity by 20 times in that same time period. Theres a clear mismatch between data centers today and the technology that goes in them. The automotive industry also faces annual challenges as hardware reaches its end of serviceable life (EOSL). Automotive companies must spend their IT budgets wisely; they struggle with EOSL challenges as re-implementation projects provide few new functions and integration efforts are often expensive due to upgrades or system changes.

Business pressures
The IBM Global CEO study revealed that automotive CEOs anticipate more change over the next three years than do most CEOs. The automotive industry has a higher percentage of CEOs pursuing global business designs than almost any other industry studied by IBM. In particular, automotive CEOs are focused on making the most of their global operations, globalizing their products and brands and deeply changing their mix of capabilities, knowledge and assets. Automotive CEOs are enthusiastic about rising consumer purchasing power particularly the tremendous opportunity in developing markets such as India and China. They are already investing well above average in this trend and plan to increase that investment by 30 percent over the next three years. Cloud technologies will enable the CEOs to respond to these challenges without making capital expenditures.

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Opportunities exist for automakers to employ cloud technologies to reduce their data center and energy footprint through virtualization, while at the same time addressing the EOSL problem. A three-year-old server reaching EOSL will generally require a replacement server with less computing power due to the increased technology density of the new server. Virtualization technology is a key component of cloud computing and can be used to move the EOSL server into a server pool on current hardware, where it will reside as a virtual server. Converting multiple physical servers into virtual servers within a server pool can result in lower power and cooling consumption. Virtualization breaks the one-to-one connection between a system and the hardware upon which it runs. Virtual servers can be migrated from machine to machine in transparent fashion. As equipment reaches EOSL, new equipment can be introduced to the server pool. Next the virtual server is migrated off the EOSL server to the new server. Finally the EOSL server is removed from the pool. No reimplementation or integration efforts are required to swap an old server in a pool for a new server. Cloud technologies can further improve the EOSL solution by extending the provisioning of the resources necessary for virtual servers. Often in the automotive industry, test and development environments are periodically underutilized. Maintaining these environments is so expensive that automotive companies often prefer to let those machines sit idle until their next period of use. Rapid automated provisioning and de-provisioning of services (made possible by moving entire images online and offline quickly) are core functions of virtualization and this includes entire software configuration environments. Virtualized development and test environment images can be moved online or offline in the cloud at a lower cost, making it possible for the underlying infrastructure to be used for provisioning new services.

As data volumes grow, the ability to provision vast amounts of low-cost storage is becoming increasingly difficult for automotive companies and increasingly easy using storage clouds. These companies rely on storage with high-performance data access and robust backup/recovery mechanisms. Lost hours caused by prolonged data recovery or lost data resulting from improper backup frequency can put entire vehicle programs at risk. Information protection services provided through cloud technologies can help automotive companies mitigate these risks. Outside of the data center, the traditional desktop client continues to have a significant role in automotive companies. With it comes the traditional problem: How to cut computing costs with centralized management without infringing on the users personal control of the computing environment. The cost of hardware and software to provision a desktop PC represents only a small fraction of the total cost of ownership (TCO) for a PC. According to Gartner Research, most companies simply do not employ rigorous best-management practices with their desktop PCs. As a result, the indirect costs of a typical desktop PC are twice the direct costs.5 In the case of a desktop PC, Gartner projects that if IT were to virtualize the graphical user interface (GUI) of all PC applications and manage the software centrally, indirect IT costs would be cut in half. For IT, that represents a considerable amount of savings, since cutting indirect costs in half reduces PC TCO by about one-third. Cloud technologies make it possible for thin clients or other Internet-connected devices to access managed, platform-independent hosted applications and full client images.

Cloud Computing for Automotive

Vehicle-embedded computers
In the Automotive 2020 study conducted by the IBM Institute of Business Value, executives estimate that 90 percent of future automotive innovation will be based on electronics, most of which will be embedded software and a sizable portion will come from companies outside the traditional automotive industry. In order to integrate electronic components throughout traditional and non-traditional suppliers, standardization and modularization will become of utmost importance. Software content will increase to 35 percent of the total vehicle value. As the amount of software on the vehicle grows, it becomes increasingly important to use cloud technologies to effectively manage and distribute these software parts. For administration and flashing of vehicle electronic control units, updated software parts need to be distributed from a centrally-managed content system to dealerships around the world.

Through enhanced network connectivity, the connected vehicle of the future will be able to use real-time remote diagnostics and prognostics to assess operating conditions and affect some degree of self-repair. Software and other service patches to electronic systems will be automatically delivered to the vehicle using cloud computing technologies, keeping the vehicle updated with a minimum of consumer involvement. When appropriate, warranty information will be communicated using these cloud technologies. Original equipment manufacturers (OEMs) and dealers will be able to offer more-comprehensive customer relations management by maintaining these cloud computing technologies to provide consumer agreement, vehicle usage data and consumer preference profiles. Service alerts, scheduling and notifications will be offered over the cloud based on operating behavior information transmitted from the vehicle.

Product development
Engineering skills continue to be available in abundance within countries such as China and India, so the redefinition of the product development footprint is a foregone conclusion. Globally-distributed product development is difficult due to a design environment that is complex, siloed and global. Operating throughout companies, geographies and system domains is a significant challenge to this environment, considering the proliferation of organizations, processes, tools and methodologies.

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Infrastructure that supports global product development can use cloud computing technologies to recognize (and respond to) these key trends and challenges. Server systems and storage can employ cloud technologies to handle an increasing amount of product development and analysis in the virtual environment. Resources in these systems can use cloud technologies to become sharable throughout projects and geographies, making it possible for them to be rapidly applied to high-priority projects such as environments for virtual product development, integration of heterogeneous operating environments and globally-distributed design environments. Design organizations that target virtual product development need to store and manage increasing amounts of data. Users can use cloud storage technologies to access and share that data throughout multiple sites and to manage the content throughout its life cycle. This includes support for product and verification data management (the metadata that captures the pedigree of information who, what, when, where), verification models for analysis, stimulus generators and test cases and the storage of analysis results. Business leaders at automotive companies see the product development landscape evolving extremely quickly. With increased focus on software engineering, a demand for full traceability of requirements throughout the life cycle of the vehicle, and the clear need for holistic system design and interaction, automotive companies are realizing that rapid innovation with software could become their major differentiator.

Enterprise collaboration
The notion of a workplace has changed. Work is increasingly performed over the cloud on the business premises of partners and suppliers, at home and in coffee shops. The automotive industry seeks a way to simplify companies want to expose internal resources to any user, from any device, from any location. Cloud applications that make the most of web technologies will make possible device-independent, securityrich access to a unified, global enterprise from inside or outside the corporate walls. The automotive industry must adapt to the consumer technology wave with its ever-increasing diversification of mobile telephone and computing platform options (iPhone, Android, Palm, Microsoft Windows Mobile, Symbian, etc.). Increasingly, employee-owned smart phones and laptop computers with built-in connections to cloud services are making their way into the workplace. In response, automotive companies need to remove barriers to collaboration by providing integrated tools over the cloud that make possible the sharing of business information throughout multiple technologies and devices inside and outside of the corporation. Enterprise collaboration must simplify communication by seamlessly combining the available communications channels, promising anywhere/anytime connectivity using cloud technologies. Automotive companies need capabilities to: Connect using instant messaging (through chat, voice, video and desktop sharing) to the people with whom the automaker does business, including suppliers. Understand colleagues availability and location using wired or wireless presence. Create communities and collaborate in online team rooms and search for other workers based upon skills, projects and communities of interest. Gain access to shared files from anywhere.

Cloud Computing for Automotive

Global expansion
The global network of vendors, employees, partners and dealers is a reality and each entity expects instant collaboration and a common platform for manufacturing, distribution and product development that can be provided through cloud technologies. In the IBM 2008 Global CEO Study, automotive CEOs ranked globalization as the external force that will have the greatest impact on their companies over the next three years, and 86 percent are reconfiguring their businesses to take advantage of global opportunities. These responses suggest that the automotive industry intends to be one of the most global in terms of business design, trailing only the electronics industry. The worldwide labor force will change and, by 2020, become radically different in terms of age, location and the way people work. Cultural awareness, diversity and adaptation will be the norm. This global workforce, with a geographically-dispersed footprint for manufacturing and product development, can significantly benefit from cloud technology for sustaining and supporting the industry in 2020. The current investments in globalization will be established and, in essence, a global infrastructure will be in place. Evolving economies and markets will fuel new products, services and business models. The challenge faced by automakers will no longer be to globalize the industry, but instead will center on effective global integration and execution over the cloud.

By 2020, investments currently underway in globalization will be largely established. The challenge will be to execute in this expansive environment, leading to the need for a multiplex workforce. As with a multiplexor in electronics, the multiplex workforce fosters the diverse skills and culture that are a byproduct of globalization and unites them into common goals and direction. This new workforce will have important new attributes (such as the ability to work with diverse cultures) and will likely be conversant in multiple languages. The new global worker will also be effective working virtually over the cloud.

Sales and marketing


The automotive industry is highly competitive, and relies upon sales and marketing organizations to get messages out to consumers. A few years ago, a key communications channel was business-to-consumer (B2C) web sites viewed on a computer. That approach is no longer sufficient. Increasingly, web traffic is coming over the cloud from mobile devices such as the iPhone, Windows Mobile and Android smart phones. Consumers expect these web pages to be highly responsive and to provide increasing amounts information delivered as rich content (such as 360 degree vehicle interior and exterior views) and through streaming media in formats suitable to the device. Meeting this demand requires device detection, web acceleration and caching strategies to keep fresh content in near proximity to the consumer and cloud computing technologies can make that happen.

IBM Global Business Services

Social media integration is another way that automotive sales and marketing is changing. Large percentages of corporate media budgets are being applied to the social media space. Automobile brands have embraced social media outlets in the cloud (such as Facebook, Twitter and MySpace) to promote messages and build direct conversations with consumers. As important as it is to get your message out, it is now equally important to learn what others are saying about you. To gain this insight, the automotive industry will need to monitor thousands of inputs streaming over the cloud on other social media sites. The application of business analytics to sift through these messages can help automotive companies identify what consumers want to know, identify whether brand messages are resonating with consumers and learn if brand messages are trending up or down with consumers. Business analytics is a powerful sales and marketing tool that affects the profitability of vehicle sales through effective management of cash incentive programs. The capture of web metrics and the application of business analytics can help determine consumer interest in the incentives offered. This information can be used to help tune the incentive amount by increasing the amount if consumer interest appears low and decreasing the incentive when consumer interest indicates incentives may not be necessary. Since the automobile industry is extremely competitive, cloud-based business analytics may reduce the time needed to identify changes in shopping trends in response to a competitors latest promotion and shorten the reaction time needed to introduce counter measures.

What is cloud computing?


Cloud computing is an emerging computing model that offers users access to their applications from anywhere, with any connected device. The services themselves are in data centers where computational resources can be dynamically provisioned and shared to achieve significant economies of scale. Cloud computing focuses on: Virtualization of infrastructure and services Automated provisioning of services Elastic scaling (increase or decrease) of computing power on demand Increased availability and connectivity with users There are different types of cloud offerings public, private and hybrid all of which can help the automotive industry better manage application growth and computing costs. Public The infrastructure in a public cloud is owned and managed by an organization selling cloud computing and is made available to the general public. In this model, computing capabilities and services (such as standardized business processes, applications and infrastructure services) are accessed by multiple subscribing clients on a flexible, pay-per-use basis. Private The infrastructure in a private cloud is operated solely for a user organization. The organization can own the private cloud or they can engage a third party to host it either on site or off. A private cloud provides restricted access to the computing capabilities and resources to be shared by employees, internal departments (such as human resources, IT or marketing) and external partners such as distributors and manufacturers.

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Cloud Computing for Automotive

Private cloud computing helps drive efficiency, standardization and best practices in the services it provides and lets you retain greater customization and control than public clouds would permit. Hybrid The infrastructure in a hybrid cloud consists of a combination of both private cloud and public cloud features. In this model, computing capabilities and resources are owned and maintained by both the user organization and the cloud provider. An organization uses public cloud computing capabilities and services for general computing, but stores customer and sensitive data in its private cloud to ensure security. Choosing your cloud To compare the benefits of public clouds with those of traditional dedicated services, you should evaluate the software services provided by application service providers (ASPs) compared to the software services that are available on the public cloud. Similarly, for private clouds, you should compare the traditional hosted enterprise IT infrastructure available in data centers to services that are available from a private cloud.

Types of services provided by cloud computing


Cloud computing provisions and delivers standardized IT services to users over a network (Internet or intranet) in a flexible pricing and usage model. The users are only aware of the service. They have no need to understand details of the underlying IT infrastructure, its technology or its implementation. The service provider is responsible for implementing the service and managing the required infrastructure. In addition to provisioning and virtualization, the cloud model also deprovisions these services so they can be reallocated for other purposes. The concept of repurposing and reuse is a key tenet of cloud computing. The cloud infrastructure focuses squarely on efficient utilization of the base infrastructure (see Figure 1). This includes virtualization, routing and storage management. The cloud platform manages the services running on the infrastructure. The services provided by the cloud are what the consumers actually use.

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IBM Global Business Services

Business Process as a Service Business Process as a Service (BPaaS) describes a situation in which a third party leases business processes and capabilities to a company so that the company does not have to handle them in-house. The services are available by network and the company either pays as it uses the services or makes a low, upfront investment to get started. Software as a Service Software as a Service (SaaS) is the distribution of software hosted by a provider in a central and remote location, made available to consumers over a network. SaaS uses a pay-as yougo pricing model, which decreases or increases the number of software licenses based on need, eliminating the need to procure, install or maintain software or hardware or incur ongoing maintenance costs. When organizations use the SaaS delivery model, they can access business applications such as accounts payable and customer loyalty and can do so virtually.

Platform as a Service With Platform as a Service (PaaS), the complete application development and deployment platform (both hardware and software) can be delivered as a service, typically over the Internet. Developers can create, test, deploy and host applications quickly, without having to bear the cost and complexity of buying and managing the underlying software and hardware. PaaS is often referred to as cloudware. In some cases, web services, web 2.0 capabilities and middleware are offered as an integrated platform on which applications can be built, assembled and run. Infrastructure as a Service Infrastructure as a Service (IaaS) provides hardware components such as servers, network equipment, memory, central processing units (CPUs) and disk space. With IaaS, an automaker could run all operations without installing and maintaining in-house data centers. The approach to the delivery of these services varies from provider to provider.

CLOUD TYPES Business Processes as a Service (BPAAS) Software as a Service (SAAS) Platform as a Service (PAAS) Infrastructure as a Service (IAAS) Business processes as a service; e.g., indirect procurement, payment processing, etc...

Software as a service; e.g., email, CRM, eCommerce, merchandise optimization etc... Application servers, databases, middleware, development tools as a service Infrastructure such as servers, storage and file-systems as a service

VIRTUALIZATION

STANDARDIZATION

AUTOMATION

Reduced Cost

Figure 1: Services in a cloud computing architecture.

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Cloud Computing for Automotive

The benefits of cloud computing for the automotive industry


Cloud computing provides dynamically-scalable and virtualized resources as a service. Users do not need knowledge of, expertise in or control over the technology infrastructure that supports them. Whether you fully understand all the technical details or not, the crucial issue is: What can cloud computing do for the auto industry? Some of the most noticeable benefits that cloud computing can bring to automakers are: Faster deployment of new capabilities. The use of a common repository, combined with scheduling and automation, means that new capabilities can be deployed much more rapidly. This is due in part to faster testing and ensuring that tests are thorough and complete (for both unit and integration tests). Improved consistency and quality of new capabilities. A common image repository one in which common and reusable images are tested and hardened ensures consistent, higher-quality results. Increased efficiency in the use of IT resources. Cloud computing helps provide significant reuse of existing compute, storage and data resources by simplifying access to them. Faster integration with partners, vendors, customers and suppliers. A cloud-based test environment requires standardization and consistency. This approach makes it possible for external partners (such as outsourced development firms) to plan test phases more efficiently and confidently, because the environment is consistent and well known.

Cloud offerings from IBM


Considering the complexity of the world in which they operate, consistency is a challenge for companies in the automotive industry. As the world moves faster, the global footprint grows and the pace of change increases, business leaders are discovering just how expensive infrastructure and people can be. Cloud computing solutions from IBM give automakers and their partners a cost-effective way to respond to the rapidly-changing dynamics of how automobiles are manufactured, purchased, distributed and serviced. IBM clients use cloud technology to build a sense and respond approach to customer loyalty. For these companies, success resides in the cloud. Clouds offer a pay as you go model. This makes it possible for automotive OEMs to invest in resources for engineering, design, manufacturing or other computing intensive capabilities as they are needed rather than in anticipation of the need. This is especially important when you consider that the investment is looked at by the business as an operating expense rather than a capital expenditure. The next important driver is speed to value: I can deploy resources in this environment quickly. This is crucial in environments that need to grow or shrink rapidly. Combine these two drivers and you get a service that grows and shrinks with users needs and lets them pay only for service usage.

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IBM Global Business Services

Overall, cloud computing presents a way to dynamically offer a service to a community that will meet their needs from an availability and performance perspective, while keeping operating costs low (and limited to expenses based on what was actually used, rather than capital investment based on projections of what the user might need). IBM Computing on Demand IBM Computing on Demand (CoD) provides clients access to IBM compute clusters (IBM System x, IBM BladeCenter, IBM System p and IBM Storage) on an hourly, weekly or yearly rental basis. Available as either a public cloud (shared, dynamic resources) or private cloud (dedicated, offsite resources), IBM CoD offers a highly flexible computing infrastructure that can scale up or down to meet demand on a pay for use basis. IBM CoD cloud centers include: New York - 2,100 cores (System x, System p) London - 6,580 cores (System x); dedicated only Tokyo - 2024 cores (System x) Future locations based on customer need The IBM CoD offering presents a cost-effective way for automotive clients to realize a flexible, high performance computing environment, one that provides a consistent platform throughout the globally integrated enterprise. This environment can support any number of advanced computing needs, such as product engineering, product development, software development and advanced analytics in support of telematics and connected vehicles. Sample automotive workloads on the IBM CoD include crash and clash analysis, Computational Fluid Dynamics (CFD) and vehicle structural analysis.

IBM Smart Business Storage Cloud Automotive OEMs and suppliers specifically have a need to store, retrieve and manage a growing amount of data for computer-aided design, virtual product development and analysis and associated test and modeling results. IBM Smart Business Storage Cloud can help successfully deploy a highperformance, scalable storage-virtualization solution to facilitate growth and innovation at lower operational costs. IBM Smart Business Storage Cloud offers a multilayer, managed storage-virtualization solution created to support your most demanding requirements for file services. We can help you successfully deploy a high-performance, scalable storage-virtualization solution built on the reliable, timetested General Parallel File System (GPFS) platform at your site or at our IBM delivery center. IBM Smart Business Storage Cloud provides design and implementation services and ongoing basic, premium and fully-managed support services to help alleviate your data storage challenges, and to help your organization facilitate growth and innovation at lower operational costs. IBM Smart Business Storage Cloud offers: Virtualized storage for storage and server consolidation to streamline storage, consolidate the management of various servers, eliminate fragmentation and improve utilization. Tiered storage and policy-based movement of data between tiers to enable reduced costs and smarter management of storage. A thin-client environment with a unified management platform to help reduce outages and storage management labor demands and costs. Advanced data replication such as mirroring and snapshot for business continuity and disaster recovery. The ability for users and corporate servers to share text, audio and video information efficiently and to scale up or down to handle various file sizes. Significantly reduced node and storage array failures and simplified data access.

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Cloud Computing for Automotive

IBM Smart Business Development and Test on the IBM Cloud IBM development and test on the cloud offers the ability for clients to remotely access scalable, elastic development and test services in a multitenant, self service mode, on a pay-peruse basis, making the most of standardized assets owned and managed by IBM. The offering helps establish a consistent software development and test environment that is available globally throughout the extended enterprise including suppliers, business partners and joint ventures. IBM Smart Business Development and Test on the IBM Cloud helps enterprises reduce operational costs and large amounts of capital outlays, improve cycle times for faster time-to-market and improve quality with virtually instant, security-rich access to a standardized test and development environment. Unlike competitive offerings, which are designed just for individual developers with either infrastructure-only access or access to proprietary software tools, only IBM takes the cloud to the next level with flexible delivery options for the IBM cloud. Each delivery option offers a different level of security along with support for multivendor instances, an integrated collaborative development environment and extensions into enterprise procurement processes. IBM offers years of proven expertise, intellectual capital and best practices in running security-rich, reliable data centers along with providing successful cloud-based solutions to enterprise environments of virtually any size and complexity.

The IBM Smart Business Development and Test Cloud went into service in September 2009, supporting the IBM POWER and IBM x86 platforms, with over 500 provisioning transactions to date. Implemented with the IBM Smart Business Development and Test Cloud method, provisioning transaction times went from five days to just over one hour. Other automated/self-service functions include: Automated approval within preset monthly spend limit Self-service purchase of optional support services for all image software components Self-service change of virtual server configuration and support Lower setup cost, easy tear-down and transparent usage-based billing Expected higher development/test productivity (enablement of more agile methods) Web application middleware stacks supporting 50 percent of IBM test activity were enabled first (WAS/IBM DB2/IBM MQSeries/Apache IHS), with additional work underway in 2010 to cover 80 percent of IBM development and test activity. IBM Smart Business Desktop Automotive OEMs and suppliers need to transform from a distributed, difficult-to-manage desktop environment to a consolidated, virtualized user desktop solution that can offer scalability, reliability, security and flexibility. IBM Smart Business Desktop makes it possible for thin clients or any other Internet-connected device to access platform-independent, hosted applications and full client images. The solution delivers a resilient, standards-based IT infrastructure for almost any traditional desktop application.

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IBM Global Business Services

Desktop virtualization can simplify management, increase business flexibility and enhance user productivity. IBM Smart Business Desktop cloud helps you repurpose your existing desktop environment to extend its value to the business, enhance security of proprietary information and provide business flexibility with faster and easier provisioning. IT infrastructure complexity and costs are reduced, while the IT budget becomes more predictable and controllable. Desktop virtualization is accelerated by making the most of IBM expertise and partnerships in this space. Over 1,200 users in the IBM China Development Labs have been moved to a private desktop cloud. Using the IBM Smart Business Desktop cloud, IBM call center teams are moving roles to desktop clouds, with initial group migrations this year in the United States and India. Estimated savings opportunity ranges from 20 percent to 30 percent of the current client provisioning costs, with additional security benefits and improved systems management. Role-based segmentation work is underway to identify additional internal groups that could benefit from the security and performance characteristics of desktop cloud architectures. Reference architectures for desktop clouds are not one size fits all and are based on user segmentation (user personas, usage patterns and business requirements) as IBM learns to apply the very best solution to meet cost and performance goals. Smart Business User Support The IBM Self-Enablement Portal When users access a web portal for support, they want accurate search results to quickly resolve their problems. The IBM Self Enablement Portal is an Internet-based user support services solution. Supported by a leading-edge knowledge base, this solution delivers comprehensive, multichannel support through a single easy-to-use interface. Hosted by IBM and delivered globally as a managed service, the IBM Self Enablement Portal is available on a per-user monthly charge and provides a personalized, multilingual environment with natural language search capabilities. Flexible knowledge management and call management integration and password management self service are available.

The IBM Self Enablement Portal addresses the issues that companies have had in implementing self-service technologies for their service desk: Obstacles in adopting self help Poor search functions How the IBM Self Enablement Portal addresses the obstacles Delivers fast and accurate results by employing a patented easy-to-use search technology Provides an extensive knowledge database that analyzes usage trends and updates data to ensure that it is relevant and current Offers multichannel support that supports intuitive search, chat and remote takeover functions Uses a personalized web interface and profiling data to meet the individual needs of the user Improves efficiency and reduce costs dramatically with an integrated solution to any existing service desk infrastructure

Inadequate content

Not totally integrated

Impersonalized approach

Standalone set of tools

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Cloud Computing for Automotive

IBM Information Protection Services IBM Information Protection Services is remote data protection that offers a managed, offsite data backup and recovery solution one that is specifically designed to be automatic, secure and reliable. These IBM services reduce backup windows by using automated, de-duplicated technologies. A pay-as-you-use pricing model helps ensure predictable monthly costs and requires no up-front capital investment. IBM Information Protection Services reduces the costs associated with: Failed restores and lost data Capital expenditures for hardware and software Technology obsolescence and refresh Research, testing, and implementation Training and retention of technical staff The need for technical staff to focus on infrastructure instead of core business needs In addition, IBM Information Protection Services addresses data protection needs for regulatory compliance, including Sarbanes-Oxley. It is one of the few remote data protection services available on Microsoft Windows, UNIX, Linux, Sun Solaris and other platforms. IBM Smart Analytics Cloud The IBM Smart Analytics Cloud focuses on transforming traditional business intelligence and analytic environments into a self service knowledge dissemination solution for the enterprise. Advanced business analytics is becoming increasingly critical in the automotive industry. Analytics can be used to obtain additional insight into data collected from the vehicle which helps design better vehicles, proactively analyze vehicle trouble codes for early warning detection of issues and analyze consumer data obtained from web sites and surveys to address consumer buying habits and shopping trends. The IBM Smart Analytics Cloud creates a standard private cloud business intelligence solution at the customer site built on mainframe capability. This solution provides you with business intelligence services powered by a cloud deployment, for greater efficiency with less cost and the resources you need to reach a broader audience.

The business intelligence and analytic functions are provided by IBM Cognos 8 business intelligence (BI), which offers a broad range of intelligence services and capabilities that enable knowledge dissemination to a diverse user install base within and throughout lines of business. The IBM Smart Analytics Cloud: Drastically reduces the number of departmental solutions to a single BI environment and is capable of supporting vast numbers of users throughout the lines of business. Introduces a single point of control for meeting departmental business processes, corporate security and compliance standards for easier enforcement of standardization. More effectively uses skilled BI resources to support a common BI delivery tool which can be made available throughout the enterprise. Reduces the capital and operating expenses needed to support enterprise-wide BI services. Supports a self service approach to dispensing BI services that reduces the time, resources and costs for delivering BI services to new divisions, departments and users. Supports critical thinking in the enterprise with BI Competency Center education. IBM BPM BlueWorks According to the IBM Automotive 2020 study, proactive flexibility in operations and processes will be necessary to keep up with rapidly evolving consumer needs and the demands of working with interdependent ecosystems. This flexibility will require the ability to anticipate market changes and the ability to continually adjust critical footprints in order to respond. With the growing importance of globally-integrated processes, lean process re-engineering and flexible business processes, IBM has developed BPM BlueWorks as an entry point to Business Process Management (BPM) projects.

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IBM Global Business Services

Figure 3.

IBM BPM BlueWorks is a social cloud that makes it possible for business leaders, business analysts and business professionals to experience the value of business process management (BPM) by creating BPM business designs in the cloud using pre-built content and collaborating through community tools. BPM business tools in IBM BPM BlueWorks make it possible for automotive OEMs and suppliers to achieve business understanding for BPM solutions and process improvements. This includes strategic intent and motivation, business goals and measure maps and business components and tasks. The tooling capabilities of IBM BPM BlueWorks support business leaders and business analysts in critical tasks that range from business architecture to process execution and do so in a cohesive and coordinated manner. The tools capture the business intent, the associated operations and actions of the business and the high-level business process data, creating a better understanding of which aspects bring value or what might need to be redesigned.

BPM processes can be exported to an asset repository or file system and can be imported into modeling tools such as IBM WebSphere Business Modeler, or directly deployed to a test environment with interactive process design. Smart Business Expense Reporting: IBM Global Expense Reporting Solutions As automotive OEMs and suppliers grow in complexity and become globally integrated enterprises, they face significant challenges with managing and processing travel and general expenses, which can be up to seven percent of a companys total expenditures. Without a comprehensive solution to effectively track, process and analyze enterprise-wide reimbursable expenses for employees, the business is vulnerable to rising costs, unapproved expenses and the penalties that come with inconsistent compliance.

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Cloud Computing for Automotive

Designed on a cloud computing model to smoothly integrate with your existing finance and human resources systems, IBM Global Expense Reporting Solutions help improve your travel and expense (T&E) processes and spend from start to finish. An easy-to-use, web-based interface lets employees submit expense reports online, through a fax or mobile devicevirtually eliminating manual, paper-based steps. IBM Global Expense Reporting Solutions can link to a wide variety of online corporate credit card and travel reservation systems for automatic data pre-population and policy review. The combined capabilities achievable with IBM Global Expense Reporting Solutions can typically lower total T&E operating costs from 50 to 75 percent and deliver significant reductions in related spend while improving employee productivity and satisfaction. IBM LotusLive Collaboration with customers, partners, suppliers and colleagues is essential to success in the globally-integrated world of the automotive industry, and IBM LotusLive is the destination for world-class online collaboration services. LotusLive is an inter-company collaboration platform that is delivered using the web. Expand your business reach with a variety of online business solutions ranging from email and web conferencing to an integrated suite of collaboration solutions all in a security-rich environment. Companies can share documents, meet online with potential customers without the annoyance of firewalls and build a network by connecting with companies that are relevant to their business.

Collaborative communication is critical for automotive companies that want to grow their business and influence sales around the world. LotusLive provides the essential business services in an intuitive environment that is designed with security in mind. LotusLive delivers these services through an online delivery model, reducing cost and startup time and eliminating complicated installations and the need for onsite IT support. This convenient and cost effective delivery model, combined with simplified collaboration, makes it easier for companies to do business with virtually anyone, anywhere, anytime. IBM adopted LotusLive Meetings in 2009 as the primary web conferencing capability for meetings among IBMers, clients and business partners. That year, the total amount of meeting time grew to over 200 million minutes. The adoption rate of IBM LotusLive for meetings has been fast, with 65 percent of current IBM meeting minutes now provided through LotusLive. IBM is also piloting the use of LotusLive Engage with 6,000 registered users sharing files internally and with clients. Strategically, IBM intends to expand the LotusLive footprint to support other collaborative requirements such as file sharing, social networking, instant messaging and more. IBM CloudBurst For automotive OEMs and suppliers that need to develop their own internally-hosted private cloud, IBM CloudBurst is a pre-packaged private cloud offering that brings together the hardware, software and services needed to establish a private cloud. The CloudBurst solution is designed from IBM client cloud implementation experiences and integrates the service management software system with servers, storage and quick start services to create a private cloud in your IT environment. CloudBurst takes the guesswork out of establishing a private cloud by pre-installing and configuring the necessary software on the hardware and making the most of services for customization to your environment. All you need to do is install your applications and start taking advantage of the benefits of cloud computing: virtualization, flexibility, scalability and a self-service portal for the provisioning of new services.

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IBM Global Business Services

CloudBurst provides an alternative to traditional IT infrastructure for IT executives who seek to enhance delivery of services and to transform the data center into a cost-effective dynamic infrastructure. CloudBurst is built for performance and is based on architectures and configurations required by specific workloads. With this IBM solution, your data center can accelerate the creation of services for a variety of workloads with a high degree of flexibility, reliability and resource optimization.

Why IBM
IBM leadership in cloud computing extends to the delivery of enterprise-wide solutions. IBM cloud computing offerings make it possible for your organization to cost-effectively address the infrastructure issues that impede optimum delivery of business process services. Engage IBM as you examine the importance of: Optimized workloads Integrated service management Choice of delivery models With optimized workloads, workload characteristics determine the rate and degree of standardization of IT and business services. The increasing complexity of IT systems requires advanced service management, visibility, control and automation. Private, public and hybrid models support the wide variety of the automotive industry computing environments and system requirements.

How to get started


When adopting cloud computing techniques, tooling and processes, it is important to use a phased approach in which each step builds upon the previous step. The initial phase should establish capability, so that evaluation and testing can determine viability and then enhance those capabilities as appropriate. The initial phase should also specifically address those characteristics of re-provisioning technologies that use automation and virtualization. Begin by identifying and prioritizing cloud initiatives. Evaluate your cloud level of readiness to determine what to address first. Figure 3 represents a roadmap you can use as a starting point. You should then refine it, using detailed information from your organization, such as the specific distribution of mainframe (such as IBM z/OS), midrange (for example, IBM AIX), UNIX (such as Linux and non-AIX) and Intel systems. Also, include information about your organizations network segmentation and virtualization, along with storage deployment and logical unit number (LUN) configurations, to further refine this model. The effects on the software development life cycle, budgeting processes and other issues can be addressed, if appropriate.

Prepare for the future with cloud computing


Cloud computing can provide the automotive industry with substantive benefits. Evaluate cloud computing as a viable solution for reducing operating costs, simplifying business processes and collaborating more easily with partners and suppliers.

For more information


To learn more about how cloud computing can help the automotive industry, visit: ibm.com/services/cloud

Key contributors
John De Marco is a Distinguished Engineer in the Application Innovation Services (AIS) Application Development Practice and is the Chief Technology Officer for AIS Industrial Sector. Throughout his 26 year career with IBM, he has led complex application development and system integration projects, including IBM program products, custom e-business solutions for worldwide automotive corporations and emerging technologies such as serviceoriented architecture (SOA), speech recognition and agile and factory-based software development. John can be contacted at mjde@us.ibm.com. Pete (Pirooz) Joodi is a Distinguished Engineer in Sales and Distribution, Industrial Sector. He has 30 years of hands-on experience in all phases of systems/software engineering and business transformation within commercial, federal and state government business entities. He is a professional engineer and an international speaker who has published a book, filed three patents with USPTO and has published in the standards and professional communities. Pete is leading the automotive portfolio in cloud computing, green data center, portal and unified communications. Pete can be contacted at pjoodi@us.ibm.com. Jeffrey (Jeff) Long is a Senior IT Architect with 26 years of successful experience in software application development, systems integration, and enterprise infrastructure architecture. Fourteen of these years have been dedicated to the automotive industry. Jeff can be contacted at longj@us.ibm.com.

Copyright IBM Corporation 2010 IBM Corporation Route 100 Somers, NY 10589 U.S.A. Produced in the United States of America July 2010 All Rights Reserved IBM, the IBM logo, System x, BladeCenter, System p, POWER, DB2, MQSeries, Cognos, WebSphere, CloudBurst, z/OS, AIX, LotusLive and ibm.com are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol ( or TM ), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the Web at Copyright and trademark information at ibm.com/legal/copytrade.shtml Microsoft and Windows are trademarks of Microsoft Corporation in the United States, other countries, or both. UNIX is a registered trademark of The Open Group in the United States and other countries. Linux is a registered trademark of Linus Torvalds in the United States, other countries, or both. Intel is a trademark or registered trademark of Intel Corporation or its subsidiaries in the United States and other countries. Other product, company or service names may be trademarks or service marks of others.
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