1 #SmarterBiz

IBM Cloud Point of View: The growth engine for business

Chris Mallon,Software Business Executive, IBM Canada Middleware Group

chris@ca.ibm.com

2 #SmarterBizSource: IBM Center for Applied Insights Under cloud cover: How leaders are accelerating competitive differentiation

For more info, visit: ibm.com/ibmcai/globalcloudstudy

As cloud aspirations grow, pacesetting enterprises are out ahead driving competitive advantage, not just efficiency

2

Pacesetters have deployed cloud on a broad

scale and are gaining competitive advantage

through cloud.

Top cloud driver: Market responsiveness

Challengers are on par with Pacesetters in

achieving greater efficiency through cloud, but

still lag on differentiation and market

responsiveness.

Top cloud driver: Collaboration

Chasers are more cautious about cloud.

They’re in early stages of adoption and are not

yet using cloud to drive competitive advantage.

Top cloud driver: Workflow optimization

Pacesetters

18%

High

agreement

High

Low

Ad

op

tio

n le

ve

l

Low

agreementGaining competitive advantage

through cloud

Challengers

51%

Chasers

31%

3 #SmarterBiz

The competitive advantage Pacesetters are gaining through cloud correlates with stronger business results

3

Source: IBM Center for Applied Insights Under cloud cover: How leaders are accelerating competitive differentiation

For more info, visit: ibm.com/ibmcai/globalcloudstudy

Gross profit

2009-12 CAGR

Revenue

2009-12 CAGR

2.4x

Pacesetters

Chasers

Challengers

12.7%

6.6%

6.8%

12.7%

9.5%

6.4%

15.3%

1.9xPacesetters vs.

Chasers

4 #SmarterBiz

Through cloud strategies, Pacesetters are gluing together key technologies and scaling up to do business in an entirely new way

Leveraging cloud for the integration and application of these strategic technologies

Source: IBM Center for Applied Insights Under cloud cover: How leaders are accelerating competitive differentiation

For more info, visit: ibm.com/ibmcai/globalcloudstudy4

100%

100%

50%50%100%

50%

50%

100%

Mobile

Social business

Big dataAnalytics

Pacesetters

Chasers

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Instant Gratification

Extensible

Flexible

Cost Effective

Marketplace Dynamics

6 #SmarterBiz

See how cloud can help you improve your competitive position

Source: IBM Center for Applied Insights Under cloud cover: How leaders are accelerating competitive differentiation

For more info, visit: ibm.com/ibmcai/globalcloudstudy6

With prioritized differentiators and an enterprise cloud strategy, technology decisions can be better aligned with business needs.

Business objectives: Prioritize competitive differentiators to tackle via cloud

Given your competitive positioning, consider where cloud could drive greater differentiation.

• New business strategies?

• Faster product or service innovation?

• Better ways of engaging customers?

• Changes to your business model?

• More informed strategic or operational decisions?

• New or broader networks of expertise?

Cloud technology:Align platforms to business objectives

The broader and more strategic your cloud initiatives are, the more critical it becomes to have an enterprise-wide strategy.

• How does your cloud strategy enable mobile, social and big data initiatives?

• Are IT and LOB collaborating effectively to manage cloud services and make investment decisions?

• Is senior management on board? What kind of governance structure do you have in place?

• Which deployment aspects should be more tightly controlled? Are teams given sufficient flexibility?

Cloud strategy: Drive enterprise responsiveness through holistic strategy

• Which systems should be on open-source platforms to gain speed, scale and access?

• Do you have the right mix of public and private cloud to meet your requirements? Or will you need the flexibility of integrated, hybrid cloud?

• Where might an industry-specific platform supply tailored functionality or fill an expertise gap?

7 #SmarterBiz

Development& DevOps

Big Data & Analytics

SecurityMobile

Business Processas a ServiceBusiness Processas a Service

Automating Business Innovation

Marketplace of High Value Consumable Business Applications

Rapid App Development through Composable and Integrated PlatformBuilt using open standards

Enterprise Class, Optimized InfrastructureBuilt using open standards

IntegrationTraditional Workloads

Integration/ API Mgmt

ComputeCompute StorageStorage NetworkingNetworking

Business Processes

ProcurementPayment

ProcessingHelp Desk AccountingRecruiting ProcurementProcurement

Payment Processing

Payment Processing

Help DeskHelp Desk AccountingAccountingRecruitingRecruiting

CommerceSupplyChain

AnalyticsTalent

ManagementCollaboration

IT Management

MarketingSoftwareas a ServiceSoftwareas a Service

Platformas a ServicePlatformas a Service

Infrastructureas a ServiceInfrastructureas a Service

Orchestration and AnalyticsSmartCloud Orchestrator SmartCloud Analytics

Custom Infrastructure

Patterns of Expertise

Performance

Application Lifecycle ManagementIBM UrbanCode

Capacity Security Integration

Mobile 3rd PartyWeb BPM

Open Ecosystem

Application

Performance

Mgmt

Virtual Storage

Center

IBM CastIron

IBM API MgrEndpoint Mgr

Identify &

Access

Expert Integrated Systems

IBM Pure

Systems

Utilize cloud services delivered from IBM to

empower IT, accelerate application delivery

and manage across on and off premise environments

Build and run your private or hybrid cloud leveraging existing custom infrastructure or next generation

integrated systems

will enable evolution to today’s environment towards Cloud efficiencies and support a Cloud First model

Evolving toCloud Enabled

Evolving toCloud First

Core cloud capabilities with a single, seamless user experience across all cloud delivery models

Optimized ITDelivery

Next Generation IT Delivery

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Decision making power is shifting from the traditional IT buyer to a new audience - the Line of Business owner & practitioner

By 2016, 80% of new investments will directly involve LOB execs with LOB leading decisions in more than 50% of those investments

48% discover brands they are not aware of while searching, 24% decide which brand to purchase solely from their self directed digital research

60% of the IT purchase process decision is completed before the prospect engages a vendor

… and the decision making process is changing

*Source: Google & Compete

Users

Recommenders

Influencers

Economic Buyers

Decision Makers

Decision Makers

Practitioners

CIO

CTOs

IT Managers

IT Operations

Manager

Data Center

Manager

Developers

Technical

Leaders

System

Administrators

IT Operations

Data Scientists

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IBM Cloud

Business Process

as a Service

Enabling business transformation

Business Process

SolutionsApplication Application Application Application Application

Software

as a Service

Marketplace of high value consumable business applications

Platform

as a Service

Composable and integrated application development platform

Infrastructure

as a Service

Enterprise class, optimized infrastructure

External

EcosystemIndustry Collaboration

Human

Resources

Big Data &

AnalyticsCommerce Marketing

DevelopmentBig Data &

AnalyticsSecurity Integration Mobile Social

Traditional

Workloads

Built using open standards

Compute Storage Networking

Built using open standards

SmarterCommerce

SmarterAnalytics

SmarterCities

SmarterWorkforce

Watson solutions

Software solutions

Middleware

solutions

PureApplication

SOFTLAYER

IBM SmartCloud

Enterprise +

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Reality check - physical implementation is complex and requires experts to deploy

Top Causes of Project Delays

Hardware• Troubleshooting and tuning

production environment• Integration, configuration and

testing of the infrastructure• Installation, cabling and

network access for the environment

Software• Integration, configuration and

testing of applications• Integration, configuration and

testing of middleware• Configuration, build and

deployment of applications

45%

45%

29%

41%

35%

34%

Phase Time (days) Budget

Specify/design 73 - 96 14% - 16%

Procure 57 - 112 19% - 21%

Implement 74 – 93 12%

Configure/test 74 – 80 10% - 11%

Cluster & HA 66 – 104 11% - 12%

Backup 44 – 108 10%

Tune 89 – 98 9% - 10%

Management 67 – 110 9 – 10%

Typical IT Project Time and Budget

From a commissioned study conducted by Forrester Consulting on behalf of IBM

Design/Deploy Manage/Maintain

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What if :

IBM could deliver and deploy the core framework in days• By deploying solutions via app store patterns

• Versus install, configure, integrate, optimize, …

• Accelerate time to value

Customer has architecture built from a set of reusable, re-deployable technology Lego’s• Providing the flexibility to add / change / grow as citizens and/or partners demand

• Agility and flexibility

Customer was able to harden this framework to ensure consistency between dev – test – stage - prod • Virtually eliminating surprises in production

• Sustainability and repeatability

Customer didn’t have to become technology experts, rather business process creation experts• If you can deploy a calculator to your iPad, you can deploy BPM on the Appliance

• Simplification

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Defined PatternsServices

ComposableServices

BusinessServices

InfrastructureServices

A True Composable Business Requires Multiple Services

SaaS

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A True Composable Business Requires Multiple Services

Born on

the cloudEnterprise

Applications

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IBM PureApplication System provides savings across the IT lifecycle“Speed is the new currency”

DeploymentFully assembled and configuredPre-installed management softwareFast pattern-based deployment

Incident/capacity managementCentrally monitor and resolve issuesAutomatic scaling

Asset managementTrack license usage of products

Security managementCentralized access control

Change managementVisibility into relationships of virtual

images in a workloadAutomatically apply changes to

desired virtual servers

How does PureApplication

System do this?9612 hrs

2302 hrs

0

10000

5000

Do It Yourself PureApplication System

Labor Hours Spent*

Deployment

Change Management

Security Management

Asset Management

Incident/capacity Mgmt

76%Savings

*Note: Do It yourself used 9 blades (144 cores). IBM PureApplication System used 3 nodes (96

cores). Each system has the capacity to run 72 workloads where each workload can sustain a peak

throughput of 1720 page elements per second.

This is an IBM internal estimated labor study based on modeling customer data on IBM hardware and software solutions and on competitor converged solutions designed to replicate

typical IBM customer usage in the marketplace. It is not a benchmark. As such, customer applications, differences in stack deployed and other systems variations may produce different

results and may vary based on actual configuration, applications, specific queries and other variables in a production environment based on published standard labor rates for IT staff.

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How does SaaS help?

Improved TCO due to lower infrastructure cost

Flexible subscription pricing

Minimal upfront investment

Continuous delivery of new capabilities allows rapid innovation and access to immediate code fixes

Lower risk with try & buy approach

Accelerates evaluations and decision making

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Remember these?

The speed of destructive innovation is accelerating

SaaS has already changed the game

Don’t be a footnote in the history of computing.

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New VendorsDouble Digit Growth

Traditional VendorsSingle Digit, Flat, Negative Growth

Fiberlink

New Relic

ServiceNow

Splunk

SolarWinds

Commvault

VMWare

CA HP

BMC Symmatec

EMC

IBM C&SIBMC

Revenue ($B)

YTY

Gro

wth

(‘1

1-’

12

)

Total revenue 1.3B (without VMWare)

Traditional competitors have high revenue, but are losing share to a new breed of competitors .. the Digital Engagers

“While the Old Lions fight, the Hyenas are stealing the food”C&SI on the April 2013 TT Study

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SaaS adoption is growing

Use of Software as a Service has skyrocketed over the last few years and shows no sign of slowing down

Achieving today's business imperatives demands technology that leverages the latest innovations to stay ahead of the competition

In order to better facilitate our client’s access to and understanding of our offerings, we have delivered a new platform for engaging IBM’s SaaS-enabled offerings.

19 #SmarterBiz

Client Centric

Engagement

Cycle

ExploreSample product instance

preloaded with

demonstration data

TryGet your own instance of

the product that you can

try with your own data

Use (Buy)Traditional IBM Sales

SaaS

Channel

SupportOnline, Chat, Community,

Talk, Watson

LearnLearn, Design and Consult

on value driven capabilities

IBM is delivering WW

Online

ExtendLink, Analyize, Report,

Orchestrate, Optimize via

dynamic Integration

Engage with

practitioners digitally

through web, social

media and video

Licensing models to address shifts to lower barrier to

entry, consumption based purchasing and ‘try and buy’

Continuous delivery

to rapidly respond

and scale to client

needs

Social collaboration,

insight and analytics

as new mechanisms

to provide expertise

(Watson inside)

Advancing IBM to Service Management 3.0

Composition APIs

to link, extend and

orchestrate services

amongst legacy, new,

and hybrid systems

20 #SmarterBiz

What is IBM Service Engage? A New Way to experience and acquire our

on-premise and SaaS solutions

for engaging clients and partner via live

guided demos available 24x7to POC your clients … start a POC in 30

minutes, anytime, anywhere your client

wants

to extend what your clients are already

buying at lower total cost via Software as a

Service

to accelerate the close

IBM Service EngageLearn • Explore • Try • Use (Buy) • Extend • Support

New way….

IBM Service Engage

21 #SmarterBiz

IBM Service Engage Solutions

Find root cause of

application problems

90% faster

Improve cost functional

processes, requests,

and maintenance

planning by 40%

Reduce labor costs by

90%

22 #SmarterBiz

Industry leaders are 92%

more likely to use asset

management analytics

IBM Service Engage Solutions

Reduces excess inventory

and ensures parts

availability for mission-

critical assets by

harnessing the inventory

management capabilities of

Maximo Asset Management

and the analytical power of

IBM SPSS.

23 #SmarterBiz

24 #SmarterBiz

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