Cloud is NOT DC hosting facilities (+OpEx Infra) & Your POWER workloads needs MUCH MORE

Cloud computing is NOT DC hosting facility with OpEx Infra

Over past few years, there is a significant increase in demand of data-center hosting facilities providers in country. Among many, these DC hosting facilities providers also have largest of cloud providers in their client list.

While some data-center facility providers are expanding their business models to offer IT infrastructure on an operational expenditure (OpEx) basis and labelling it as "cloud," this approach lacks the comprehensive service offerings and flexibility that define true cloud environments. Cloud computing transcends traditional data center hosting by offering a wide array of integrated IT services, dynamic scalability, and advanced automation capabilities. True cloud platforms provide on-demand resources, high availability across multiple geographic regions, and a variety of built-in services like managed databases and AI/ML, making them far superior to basic data-center hosting facilities dressed as cloud solutions.

The high-level building blocks of a data-center facility typically include the following components,

1. Power and Environmental Control
• Power Supply and Backup Systems:

• Primary Power Supply: Connection to the grid.
• Backup Power Supply: Uninterruptible Power Supplies (UPS) and diesel generators.

• Cooling Systems:

• HVAC Systems: Heating, Ventilation, and Air Conditioning.
• CRAC Units: Computer Room Air Conditioning units.
• Chillers: Provide cooling to the HVAC systems.

• Environmental Monitoring:

• Sensors: Temperature, humidity, and airflow sensors.
• Monitoring Systems: Software to track environmental conditions.

2. Physical and Security Infrastructure:
• Physical Infrastructure:

• Server Racks: Enclosures that house the servers.
• Cabling and Network Equipment: Structured cabling, switches, routers, and firewalls.

• Security Systems:

• Physical Security: Security personnel, CCTV surveillance, biometric access control.
• Cybersecurity: Firewalls, intrusion detection/prevention systems, and encryption.

• Fire Suppression Systems:

• Detection Systems: Smoke detectors and heat detectors.
• Suppression Systems: Sprinklers, gas-based suppression systems (e.g., FM200).

3. Network and Storage Infrastructure
• Network Connectivity:

• Internet Backbone Connections: Multiple high-speed internet connections.
• Redundancy: Multiple paths for network traffic to ensure no single point of failure.

• Storage Systems:

• SAN: Storage Area Network.
• NAS: Network Attached Storage.
• Backup Solutions: Offsite and onsite backups.

4. Compute and Management Systems
• Servers and Compute Infrastructure:

• Compute Nodes: Physical servers providing compute resources.
• Virtualization Platforms: Software to manage virtual machines.

• Management and Automation:

• DCIM: Data Center Infrastructure Management software.
• Orchestration Tools: Automation tools for managing workflows and resources.

Upon a fast read, one can easily fall prey to the idea that DC infra facility being same as cloud computing, but a deep read quicky reveals that it is not as it mainly constitute of Infrastructure building blocks, but no integrated IT framework around them.

MUST consider criteria’s for POWER workloads cloud

For organisations, including financial institutions, understanding that "DC Hosting Facility Is NOT Cloud Computing" is crucial due to the significant differences in capabilities and benefits. Cloud computing offers advanced features which are essential for handling sensitive financial data, while DC hosting facility providers don’t.

Recognising these differences ensures financial institutions can leverage the full potential of cloud computing, including cost efficiency, regulatory compliance, and enhanced performance, thereby avoiding the pitfalls of simply outsourcing to basic data-center facilities.

“TRUE CLOUD = DC Hosting facility + Integrated IT services”

For existing on-premise POWER systems clients, recognizing the critical differences between true cloud computing and mere DC hosting providers claiming to be cloud is paramount. As these clients consider transitioning to the cloud, they need to ensure they are moving towards a solution that offers comprehensive cloud-native services, such as dynamic scalability, robust security with comprehensive identity and access management. Opting for a genuine cloud provider like IBM Power Virtual Server guarantees access to these advanced capabilities, protecting their investments and avoiding the pitfalls of limited service offerings from traditional DC hosting providers mislabelling themselves as cloud providers. This understanding is essential for maximizing the benefits and ROI of their cloud migration.

IBM Cloud & IBM Power Virtual Server (PowerVS) clearly emerges as a premier choice for enterprises including financial institutions’ cloud workloads. IBM Power Virtual Server provides unparalleled advantages over DC hosting facility providers for POWER Systems hosted workloads.

Let us walkthrough some of the important qualification criteria for evaluation of cloud for hosting business critical workloads,

Regulatory Compliances

Regulatory compliance ensures financial institutions operate within legal frameworks, safeguarding stability and integrity. It builds trust with clients and stakeholders, mitigating risks of fraud and financial crimes. Adherence prevents hefty fines and reputational damage, promoting long-term sustainability. Ultimately, it fosters a fair and transparent financial ecosystem essential for economic growth.

The ISO/IEC 27001:2013 (ISO 27001) standard provides guidance for developing an Information Security Management System (ISMS), a risk-based system through which an organization can design, implement, maintain and continually improve its information security over time. 

MeitY empanelment in India serves as a seal of approval from a governmental body that is entrusted with the oversight of electronic and information technology. This accreditation ensures that the data-centre adheres to stringent regulatory standards, fostering a sense of trust and confidence among clients.

IBM Power Virtual Server is Financial Services® Validated. IBM designates IBM Cloud services as IBM Cloud for Financial Services Validated when the services are determined to materially implement the IBM Cloud framework for financial services control requirements.

Last but not least, GDPR safeguards personal data privacy, ensuring robust protection and transparency for individuals' information. For financial institutions, it is crucial as it fosters trust, enhances data security, and mitigates risks of hefty fines and reputational damage.

Refer this article for a detailed read on “How IBM Cloud can help Indian Financial Institutions comply with their cybersecurity regulatory obligations from RBI, IRDAI and SEBI”.

Advanced Security

Advanced security is crucial for financial institutions to protect sensitive customer data from cyber threats and breaches. It ensures the integrity of financial transactions, builds customer trust, and upholds regulatory compliance. By preventing fraud and financial crimes, advanced security safeguards the institution's reputation and financial stability.

IBM Cloud integrates advanced security features, including data encryption at rest and in transit, comprehensive identity access management, and continuous logging &  monitoring to protect  against cyber threats.

Data encryption at rest and in transit is vital for financial institutions as it protects sensitive information from unauthorized access and breaches. It ensures that data remains secure whether it's being stored or transmitted, thereby maintaining customer trust and regulatory compliance.

Comprehensive identity access management is essential to ensure that only authorized individuals can access sensitive data and systems. It strengthens security by preventing unauthorized access and reducing the risk of insider threats. Effective identity management also supports regulatory compliance and enhances overall operational efficiency. IBM Cloud IAM is comprehensive due to its granular access controls ensuring robust security.

Continuous logging and monitoring are crucial for financial institutions to detect and respond to cyber threats in real time, safeguarding sensitive data and ensuring compliance. IBM Cloud provides advanced logging and monitoring tools, leveraging advanced technologies thus enhancing overall security posture.

A SOC 2 Type II report focuses on and examines a service provider’s internal controls and systems related to security, availability, processing integrity, confidentiality, and privacy of data. SOC 2 Type II certification is vital for financial institutions to ensure rigorous data security and operational controls, building customer trust and meeting regulatory requirements. IBM Cloud's SOC 2 Type II compliance demonstrates its commitment to high security standards, providing financial institutions with a secure and reliable cloud environment.

ISV / Workload Certifications

ISV/workload certification is important for financial institutions as it validates that third-party software and workloads meet stringent security and compliance standards. This certification ensures that integrated solutions are secure, reliable, and compliant, thereby minimising risk and enhancing operational integrity.

IBM Cloud Power Virtual Server is certified for critical financial services applications (from the domains of banking, finance, security, finance & others), meeting the stringent ISV certification standards required by the industry. Running an ISV-certified stack on the cloud is crucial for ensuring that all integrated solutions are secure, compliant, and reliable. IBM Cloud Power Virtual Server aligns perfectly with these requirements, offering financial institutions the confidence that their sensitive and demanding workloads are protected by robust data security and high availability. This adherence to ISV certification standards not only ensures full regulatory compliance but also provides a secure and dependable environment for critical financial operations.

When it comes to hosting your critical workloads on Power servers, IBM Cloud Power Virtual Server (PowerVS) stands out due to its seamless integration of IBM's proprietary PowerVM and AIX technologies. Unlike third-party hosting providers, which might lack deep, OEM-level insights and support, IBM ensures superior ISV support and compatibility. This is because IBM PowerVS leverages the same infrastructure and software stack designed and managed by IBM, offering unparalleled reliability, optimized performance, and cohesive support for enterprise applications. This holistic integration ensures that all components work in harmony, providing a consistent, high-quality experience that third-party providers simply can't match.

Cost efficiency (led by fundamental cloud characteristics)

Cost efficiency, driven by fundamental cloud characteristics such as on-demand scalability and pay-as-you-go billing, is a crucial evaluation criterion for organizations considering cloud hosting for their POWER workloads. By leveraging these cloud features, companies can dynamically adjust resources based on real-time needs, avoiding over-provisioning and thus reducing overall expenditure, allowing businesses to allocate funds more strategically and respond swiftly to market changes. This financial agility and efficiency make IBM Cloud Power Virtual Server an attractive and practical solution for hosting critical workloads.

 On-demand self-service provisioning is pivotal in bringing cost efficiencies for organisations hosting their POWER workloads on the cloud. By allowing users to quickly and autonomously provision resources as needed, this cloud feature eliminates the need for over-provisioning and maintains an optimal balance between demand and supply. This flexibility not only reduces unnecessary capital expenditure but also aligns resource usage with actual operational requirements, ensuring that costs are incurred only for the resources actively in use. As a result, organizations can achieve significant savings and financial agility, making on-demand self-service provisioning a vital component of cost-effective cloud strategies.

Hourly billing is crucial for cost efficiency when hosting POWER workloads on the cloud. This flexible pricing model allows organizations to pay only for the exact amount of compute and storage resources used, rather than committing to long-term contracts or fixed costs. By aligning expenses directly with actual usage, hourly billing eliminates the waste associated with over-provisioning and ensures that companies can scale their resources up or down as needed without financial penalties. This dynamic cost management approach enables more precise budgeting and maximizes the return on investment, making it a key factor in optimizing cloud expenditure.

IBM continuously invests in cutting-edge technologies, ensuring our cloud offerings remain at the forefront of innovation. This commitment translate into better performance, new features, and continuous improvements in our services.

A datacenter hosting facility providers may offer basic IaaS services but lack the depth of investment, innovation and global expertise that IBM brings to the table.

Performance & Reliability

When evaluating cloud hosting options for POWER workloads, "performance & reliability" is a crucial criterion for organizations. Ensuring consistent and optimal performance is essential for maintaining the efficiency and responsiveness of critical applications, which directly impacts business operations. High reliability minimizes downtime and guarantees that services remain available to users, bolstering trust and satisfaction. IBM Cloud Power Virtual Server excels in providing both robust performance and reliability, making it the superior choice for hosting mission-critical workloads, thereby ensuring business continuity and operational excellence.

IBM's FlashSystem 9000 (FS9K) is renowned for its ultra-low latency and high throughput, which are critical for the performance of enterprise workloads. By leveraging Fibre Channel (FC) connections to the FS9K, IBM Power Virtual Server (PowerVS) delivers exceptional I/O speeds. This ensures that even the most demanding applications, such as real-time analytics and transaction processing, perform optimally without bottlenecks.With multiple storage tier options available, organizations can optimize their storage costs by categorizing data based on access frequency and performance requirements. This flexibility allows for efficient resource allocation and ensures that mission-critical data is always stored on the highest performance tier.

PowerVS includes advanced virtualisation technologies, which provides robust capabilities and allows for efficient resource utilization. It also comes with comprehensive management tools that simplify the administration of virtual environments, ensuring optimal performance and reliability. These tools enable organisations to monitor and manage their workloads effectively, ensuring that they meet performance benchmarks and maintain high reliability.

IBM Cloud Power Virtual Server (PowerVS) offers a standard Service Level Agreement (SLA) of 99.95%, which directly translates to high performance and minimal downtime. This ensures that critical workloads experience consistent and reliable operation, minimising disruptions and maintaining productivity.

Last but not least, Having 24 x 7 access to the IBM Cloud technical support team is crucial for enhancing the performance and reliability of your IBM Power Virtual Server.

Conclusion

Moving your critical business workloads to IBM Cloud Power Virtual Server is not just a choice but a strategic imperative. The unmatched performance, scalability, compliance, and security of IBM PowerVS make it the ideal platform for your critical applications, ensuring you stay ahead in a competitive landscape while meeting all regulatory requirements.

IBM Cloud Power Virtual Server stands unrivalled in providing the robust infrastructure necessary for digital transformation. By leveraging PowerVS, an organization can achieve operational excellence and secure their critical workloads, setting the stage for sustained business growth. Embrace this journey with IBM PowerVS to drive your digital transformation and fortify your position in the financial sector.