Cloud POV: The Growth Engine For Business

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IBM Cloud Point of View: The growth engine for business

Chris Mallon,Software Business Executive, IBM Canada Middleware Group

[email protected]

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Source: IBM Center for Applied Insights Under cloud cover: How leaders are accelerating competitive differentiation For more info, visit: ibm.com/ibmcai/globalcloudstudySource: 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

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 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%

Highagreement

High

Low

Ado

ptio

n le

vel

Low agreement

Gaining competitive advantage through cloud

Challengers51%

Chasers31%

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


Gross profit2009-12 CAGR

Revenue2009-12 CAGR

2.4x

PacesettersPacesetters

ChasersChasers

ChallengersChallengers

12.7%

6.6%

6.8%

12.7%

9.5%

6.4%

15.3%

1.9xPacesetters vs.ChasersPacesetters vs.Chasers

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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


100%

100%

50%50%100%

50%

50%

100%

Mobile

Social business

Big dataAnalytics

Pacesetters

Chasers

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Instant GratificationExtensible

FlexibleCost Effective

Marketplace Dynamics

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See how cloud can help you improve your competitive position


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?

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Development& DevOps

Big Data & AnalyticsSecurityMobile

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

Integration Traditional Workloads

Integration/ API Mgmt

ComputeCompute StorageStorage NetworkingNetworking

Business Processes Procurement Payment

Processing Help Desk AccountingRecruiting ProcurementProcurement Payment Processing

Payment Processing Help DeskHelp Desk AccountingAccountingRecruitingRecruiting

Commerce SupplyChain AnalyticsTalent

Management Collaboration 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 CastIronIBM API Mgr

Endpoint MgrIdentify & Access

Expert Integrated Systems

IBM PureSystems

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 B2B Customer Study, June 2012

UsersUsers

RecommendersRecommenders

InfluencersInfluencers

Economic Buyers

Economic Buyers

Decision MakersDecision Makers

Decision Makers

Practitioners

CIOCTOsIT ManagersIT Operations ManagerData Center Manager

DevelopersTechnical LeadersSystem AdministratorsIT OperationsData Scientists

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IBM Cloud

Business Processas a Service

Enabling business transformation

Business ProcessSolutions

Application Application Application Application Application

Softwareas a Service

Marketplace of high value consumable business applications

Platformas a Service

Composable and integrated application development platform

Infrastructureas a Service

Enterprise class, optimized infrastructure

ExternalEcosystem

Industry CollaborationHuman

ResourcesBig Data & Analytics

Commerce Marketing

Development

Big Data & Analytics

Security Integration Mobile SocialTraditionalWorkloads

Built using open standards

Compute Storage Networking

Built using open standards

SmarterCommerce

SmarterAnalytics

SmarterCities

SmarterWorkforce

Watson solutions

Software solutions

MiddlewaresolutionsPureApplication

SOFTLAYER

IBM SmartCloudEnterprise +

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

Top Causes of Project DelaysHardware• 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

SaaSSaaS

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A True Composable Business Requires Multiple Services

Born on the cloud

EnterpriseApplications

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

Deployment Fully assembled and configured Pre-installed management software Fast pattern-based deployment

Incident/capacity management Centrally monitor and resolve issues Automatic scaling

Asset management Track license usage of products

Security management Centralized access control

Change management Visibility into relationships of virtual

images in a workload Automatically 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

EMCIBM C&SIBMC

Revenue ($B)

YTY

Gro

wth

(‘11

-’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• Software as a Service has skyrocketed over the last few years• Today's business imperatives demands technology that leverages innovations• We have delivered a new platform for engaging IBM’s SaaS-enabled offerings.

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Client CentricEngagement

Cycle

ExploreSample product instance

preloaded with demonstration data

ExploreSample product instance

preloaded with demonstration data

TryGet your own instance of the product that you can try with your own data

TryGet your own instance of the product that you can try with your own data

Use (Buy)Traditional IBM Sales

SaaSChannel

Use (Buy)Traditional IBM Sales

SaaSChannel

SupportOnline, Chat, Community,

Talk, Watson

SupportOnline, Chat, Community,

Talk, Watson

LearnLearn, Design and Consult on value driven capabilities

IBM is delivering WW Online

LearnLearn, Design and Consult on value driven capabilities

IBM is delivering WW Online

ExtendLink, Analyize, Report,

Orchestrate, Optimize via dynamic Integration

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 APIsto link, extend and orchestrate services amongst legacy, new, and hybrid systems

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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 24x7

to 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

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

New way….

IBM Service Engage

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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%

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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.

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Next Steps

1. Join me in the Social Café to continue the conversation.

2. Meet our Specialists at the Cloud Table in the Solution Showcase.

3. Find more information at http://www-01.ibm.com/software/tivoli/?lnk=mprSO-tivo-usen

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IBM Performance Management for Applications and Infrastructure solutions increases your end user satisfaction with complete visibility and control of your application environment.

Pain points How this offering helps User scenarios Typical buyers

• Increasing maintenance costs

• No end-to-end view of app health

• Missed SLAs

• Find the root cause of application problems 90% faster

• Improve the availability of critical applications by 60-90% with integrated analytics

• Reduce the length of outages and slowdowns by 50%

•Quickly identify and resolve a bottleneck

• Ensure SLA and KPI compliance

•Manage all types of workloads

• Prevent outages

• IT Ops Managers - reduce infrastructure costs

• LOB Owner - accelerate delivery of new services

• App Developers - monitor their apps

List Price Competitive Differentiators Questions to ask

• IBM Monitoring (SaaS): $25/month per Average Managed Virtual Server (aMVS)

• IBM Application Diagnostics (SaaS): $120/ month per Average Managed Virtual Server (aMVS)

• Flexible delivery options allow for SaaS, on premise, and hybrid environments

• Integrated analytics for faster root cause analysis and problem resolution

• Broad application coverage from new cloud based languages to traditional enterprise workloads

• Do you have apps moving to – or already in – the Cloud, with connections to your data center?

• Are your app teams decentralizing and gaining independence?

• Are your app lines of business moving to an OpEx model?

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IBM Workload Automation (SaaS) drives the execution of Business Processes with the lowest TCO across all environments, servers and applications. It offers speed of automation, power to business and precise governance.


• Need to reduce expenses

• No resources to build an automation infrastructure

• Lack of technical know-how hinders automation

• 30% reduction in execution time of business workloads, resulting in millions of $$$ in savings

• 90% reduction in labor costs and total control of business SLAs

• 35% savings in operation costs and improved staff productivity to support additional workloads

• Get time back by automating your processes - Automate BI & ERP processes in minutes

• Manage your business SLA’s - Run and monitor workloads wherever you are

• IT Ops managers - wants to move to a service-centric delivery organization

• LOB owner – wants low cost solution with immediate benefits, ease of use and scalability to grow with evolving needs.

List Price Competitive Differentiators Questions to ask

Starts at $70 per 1,000 executed jobs per month

Price decrease for larger volumes of jobs

1k - 25k jobs each 1k job pack is priced at $70/mth

25k - 250k jobs each 1k job pack is priced at $56/mth

250k – 1,000k jobs each 1k job pack is priced at $35/mth

> 1,000k jobs each 1k job pack is priced at $21/mth

• Get started with ZERO investment. Competitors force you to make an upfront commitment.

• Faster TTV with a ready-to-use application catalog. Competitors need your to reach out to business partners to get started.

• Powerful and Proven solution : Industry leading technology which offer robust optimization mechanisms to support changing business needs while still maintaining SLAs.

• IBM’s strong commitment to Open Standards - With OSLC, workload automation is easily integrated with other OSLC-enabled applications like monitoring, ticketing, etc.

• IT Ops manager: Are you spending too much time & money, building and managing your workload management infrastructure?

• LOB owner: Is it taking too much time to automate your processes, and monitor them for critical SLAs?

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SmartCloud Control Desk (SaaS) delivers a unified service management solution to simplify business processes, maximize asset efficiency, and improve the end user experience


• Fragmented service management processes are causing inefficiency

• No visibility of assets across the enterprise

• Hard to manage multiple apps on different platforms

• Reduce IT change related outages by 70%

• Improve first call resolution rate by 25%

• Reduce request response times by 60%

• Lower help desk calls by 80% through end user empowerment and service request automation

• Combine processes controls with runbooks

• Synch data across unified domains

• Get a working environment up and running in hours, not weeks

• LOB owner: Low cost, quick TTV, ease of use and scalability to grow with evolving needs.

• IT Manager: Reduce infrastrasture costs

List Price Competitive differentiators Questions to ask

• $99/month per Authorized User

• $297/month per Concurrent User

Consistency – Single offering for both Enterprise & SMB, and SaaS and On-Premise

Capability –Provide deeper functionality than competition

Integration - With a wide range of IB/3rd party products to satisfy any clients needs

• Do you want a complete, integrated service management solution that includes configuration, change, asset, and/or license management?

• Is IT infrastructure support a core competency or an ongoing headache?

• Are your lines of business moving to a SaaS and/or OpEx model?

Entitlement Price

• $49/month per Authorized User

• In addition to avg S&S cost of $26//month per Authorized User

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Maximo Asset Management (SaaS) reduces the complexity and cost of managing and maintaining enterprise assets, while increasing efficiency in work scheduling and inventory levels

Pain points How this offering helps

User scenarios Typical buyers

Lack of visibility and control over critical assets that affect compliance and business performance

Inefficient allocation of work resources

Costly asset failures causing increased asset downtime

Improve workforce utilization by 10% or more

Reduce inventory carrying costs by 20% or more

Increase Asset Utilitization by 3% - 5%

Consolidated asset and work management system

Robust planning and scheduling of work based on criticality of job task and availability of resources

Detailed inventory planning to react quickly to changing demand patterns

VP of Engineering, CIO, Maintenance Directors, Asset Reliability Officers

List Price Competitive differentiators Questions to ask

$159/month per Authorized Use

Scheduler add-on: $40/month for Authorized User license only

$477/month per Concurrent User

Market leading capabilities in a SaaS model, You no longer have to settle for ‘good enough’

Scheduling & Mobility as integral part of Maximo EAM solution

Support all your enterprise assets, including operational technology

Ability to transition to 'on premise' if business requirements change

Do you want a complete, integrated asset management solution that includes configuration, change, asset, and/or license management?

Is IT infrastructure support a core competency or an ongoing headache?

Are your lines of business moving to a SaaS and/or OpEx model?

Do you want the flexibility of being able to move from SaaS to on-premise (or the other way)?

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Maximo Inventory Insight (SaaS) – Pre-configured inventory decision support system delivered as a service.


Inventory over- and under-stock conditions increase expenses and risk.

Inventory management ties up many resources.

Reduces inventory holding costs by 15-20% in first year.

Increases asset availability and utilization by avoiding parts outages

Automatically generates optimal stock replenishment plan.

Increase asset utilization and productivity

Automatically update Reorder Points in Maximo, at users discretion

Predict over-stock and out-of-stock conditions to generate optimal reorder management.

Identify stagnant inventory

Asset / maintenance / inventory managers

List Price Differentiators Questions to ask

Based on BOTH inventory value AND # users

Inventory value:

Up to $100M - $3500/month

$100M-$500M - $7500/month

Over $500M - $15K/month

# Users

$100 per authorized user per month

Business: Pre-configured, EAM-integrated SaaS-delivered

Technical: Multiple analytics, small data collector, pure add-on

Do you know how much excess inventory your organization has?

How many dollars is your organization tying up in inventory?

Do you know the risk in asset downtime due to potential out-of-stock conditions?

How many people are involved in inventory management?

Cloud POV: The Growth Engine For Business

Technology

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