Competitive Technical Briefing e-business on demand · 2005-06-10 · CTS6-01 Introduction.ppt 3...
Transcript of Competitive Technical Briefing e-business on demand · 2005-06-10 · CTS6-01 Introduction.ppt 3...
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Brought to You by the IBM Competitive Technical Laboratory
e-business on demandCompetitive Technical Briefing
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CTS6-01 Introduction.ppt 2
Delivers goods and services on demand
Satisfies customers with immediate responsiveness
Senses and responds to changes in customer needs
Achieves organizational efficiency
Necessary to prosper in the on demand era!
What is an on demand Business?
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CTS6-01 Introduction.ppt 3
e-business on demand: An enterprise whose business processes —integrated end-to-end across the company and with key partners, suppliers and customers — can respond with speed to any customer demand, market opportunity or external threat
People Processes Information+ +
“Almost every IT project involves application integration to combine packaged applications, new custom applications or modified legacy applications”
Business Integration is the Top Customer Priority
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CTS6-01 Introduction.ppt 4
ComputingEnvironment
Busin
ess
Desig
nFinancial &
Delivery Models
How to Become An on demand Business
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CTS6-01 Introduction.ppt 5
ComputingEnvironment
Busin
ess
Desig
nFinancial &
Delivery Models
Step by step process
improvements
on demand operating environment
Traditional ownership or pay
as you go
How to Become An on demand Business
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CTS6-01 Introduction.ppt 6
$100M Revenue$ 83M Cost$ 17M Profit
Company A
$100M Revenue$ 83M Cost$ 17M Profit
Company B
Achieves 1% Difference in Effectiveness1% increase in new customers1% more business with each customer1% reduction in costs
What Happens?
Small Advantages are Magnified
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CTS6-01 Introduction.ppt 7
Small Advantages are Magnified
$100M Revenue$ 83M Cost$ 17M Profit
Company A
$100M Revenue$ 83M Cost$ 17M Profit
Company B
$102M Revenue$ 82M Cost$ 20M Profit
$ 98M Revenue$ 83M Cost$ 15M Profit
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CTS6-01 Introduction.ppt 8
Information Technology is at the heart of an on demand business
Software makes it work
Middleware creates the software platform for business applications
Middleware selection is a strategic decision
on demand Operating Environment
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CTS6-01 Introduction.ppt 9
on demand Operating Environment for Servers
People IntegrationPeople Integration
WebSphere Portal ServerLotus Collaboration
Process IntegrationProcess Integration
WebSphere BusinessIntegration
Data IntegrationData Integration
DB2 Information IntegratorDB2 Content Manager
Programming EnvironmentProgramming EnvironmentWebSphere Application Server
Rational and WebSphere Development Tools
Deployment EnvironmentDeployment EnvironmentTivoli System Management
Virtualized Resource Allocation
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CTS6-01 Introduction.ppt 10
Runs on any server
Supports any client
Open standards
Interoperates with existing systems
Scalable and reliable
Buy, don't build
World class support
on demand Operating Environment Requirements
People IntegrationPeople Integration Process IntegrationProcess Integration Data IntegrationData Integration
Programming EnvironmentProgramming Environment
Deployment EnvironmentDeployment Environment
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CTS6-01 Introduction.ppt 11
on demand Operating Environment –Work With What You Have
People IntegrationPeople Integration Process IntegrationProcess Integration Data IntegrationData Integration
Programming EnvironmentProgramming Environment
Customer ApplicationsCustomer Applications
Central and Departmental Servers
Legacy Systems
Packaged Applications
Other Environments
Browsers
Windows .NET
Linux
Mobile Devices
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CTS6-01 Introduction.ppt 12
Open Standards
JAVA Standards .NET proprietary JAVA Standards Moving fromproprietaryto JAVA
Integration WebSphereDB2LotusRational
.NETSQL ServerExchange, EtcWindows only
9i Application Server9i Data Base ServerCollaboration Suite
NetWeaver
Automation TivoliCross platform
Windows only Not in this business
Not in this business
Virtualization Logical partitioningBladesClustersStorage Virtualization
Not in this business Not in this business
Not in this business
IBMon demand
Microsoft.Net
OracleSuite
SAPNetWeaver
on demand Operating Environment -Competitive Perspective
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CTS6-01 Introduction.ppt 13
MicrosoftMicrosoft$10.7B$10.7B
IBMIBM $2.6B $2.6B
SunSun $1.0B $1.0BHPHP $1.1B $1.1B
IBMIBM$11.0B$11.0B
ComputerComputerAssociates Associates $2.5B$2.5B
OracleOracle$6.3B$6.3B
Microsoft Microsoft $3.1B $3.1B
MicrosoftMicrosoft$9.4B$9.4B
SAPSAP$4.0B$4.0B
PeopleSoftPeopleSoft $1.2B $1.2BOracle Oracle $1.7B$1.7B
2001 Revenue2001 Revenue
Software Opportunity (2006) = $290B '02 - '06 CGR = 9%
Operating Systems $35B
7% CGR
Applications $148B
9 - 10% CGR
Middleware $107B
9 - 10% CGR
Note: IBM middleware revenue includes IGS transactionsSource: IBM analysis based on Industry Reports / Market Research, 1/03
IBM is the Largest Middleware Vendor
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CTS6-01 Introduction.ppt 16
Systems Management$32B
8% CGRIBM Rank: #1IBM Rank: #1
Data Management $32B
9% CGRIBM Rank: #1 IBM Rank: #1
Messaging, Collaborationand e-Learning
$8B13% CGR
IBM Rank: #1IBM Rank: #1Transaction Management
and Integration$17B
10% CGRIBM Rank: #1IBM Rank: #1
Business ProcessIntegration
$4B21% CGR
IBM Rank: #1IBM Rank: #1
Middleware Opportunity (2006) = $107B '02 - '06 CGR = 9 -10%
Source: IBM analysis based on Industry Reports / Market Research, 1/03
ApplicationDevelopment Tools
$14B5% CGR
IBM Rank: #1 IBM Rank: #1
Middleware Market
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CTS6-01 Introduction.ppt 17
Source: Gartner / Dataquest 2003
Recent WebSphere Market Sweep
8%BEA31%WebSphere #1Overall AIM:
8%Tibco17%WebSphere #1Broker:
5%Tibco81%WebSphere #1Message:
10%SAP13%WebSphere #1Portal:
29%BEA37%WebSphere #1Application Server:
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CTS6-01 Introduction.ppt 18
$20K per CPU WS Commerce Express
$625 per connection AND $625 per server(includes dev tools)
WS Business Integration Connect
$119/userDomino Collaboration Express
$2,500 per CPUDomino Utility Express
$135/ userWS Portal Express Plus(includes Sametime & Quickplace)
$65/client (desktop, laptop, workstation)Tivoli Storage Resource Manager Express
$124/ user AND $624 per serverDB2 Express
$85/ userWS Portal Express
$25/userWAS Express
Price (includes subscription & support)
Product Offering
IBM Express Products for Small and Medium Businesses -Low Price, Easy to Install
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CTS6-01 Introduction.ppt 19
Switch to Portal Based CollaborationDeploy an Enterprise PortalIntegrate Business Processes End to EndSelect WebSphere for Your Server Side EnvironmentProtect Yourself! Security Can No Longer Be IgnoredIt’s Time to Consider LinuxImprove Access to InformationIncrease Programmer Productivity With WebSphere StudioMake Your Development Teams More EfficientBuild an Integration BusCut Costs in the InfrastructureImprove business responsiveness and agility, cut I/T costs and time to market
Key TrendsInvestments in Your on demand Operating Environment
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CTS6-01 Introduction.ppt 20
for Software Vendors
and Solution Providers
A Message ...
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CTS6-01 Introduction.ppt 21
1520
3038
5071
8994 95 94
111121
130152 144
147
41% 75% 71% 36% 47% 56% 50%36% 24%
28%
46%
31%
28%
36%
16%10%
1986
1987
1988
1989
1990 1991
1992
1993
1994
1995
1996
1997
1998
1999
2000 2001
0
5
10
15
20
25
30
Tota
l Rev
enue
, $B
0
50
100
150
200
$/U
nit
Microsoft desktop revenue / PC
Revenue Growth
Ballmer pioneered the measurement 'dollars per desktop.'
% Revenue Growth
Source: IT Industry Average GMV 0H02, Microsoft & Intel CHQ MI & Finance analysis of Wall Street data , PC Shipments: IDC 12/01 Forecast
Microsoft is Taking More From Each PC Sale …
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CTS6-01 Introduction.ppt 22
Source: PC Shipments: IDC 12/01 Forecast, IT Industry Average GMV 0H02, Microsoft & Intel CHQ MI & Finance analysis of Wall Street data
2001 2002 2003 2004 2005 20060
500
1000
1500
Rev
enue
, $/P
C
Projected industry average revenue / PC Unit
Microsoft + historical rate
OEM Oppty: $600 - $800
Microsoft plus constant Intel
OEM Oppty:$900 - $1100
$1343
$1050
… Leaving Less For Others
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CTS6-01 Introduction.ppt 23
Microsoft is Taking More From Enterprise BudgetsChanges to Enterprise Licensing Agreement
� Elimination of Upgrade Advantage� One-time version upgrades� Least expensive and most widely used upgrade method
� Replace with Software Assurance� Annual subscription charge (25% to 28% of price)� Provides rights to product versions released during the term of the
agreement� Three year term with options to renew� Impact - Costs more than past upgrade options (most organizations will pay
35%-107% more to upgrade per Gartner analysis)� Impact - Added cost if not current - Must GET CURRENT in order to enroll
� Adverse customer reaction� Impact - Customers are looking for alternatives
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CTS6-01 Introduction.ppt 24
� Microsoft application sales are $500M per year � Built on Great Plains and Navision acquisitions� Competing with former ISV partners
3Q004Q00
1Q012Q01
3Q014Q01
1Q022Q02
3Q024Q02
0
50
100
150
$M
Business Solutions Revenue History
bCentral MS CRM
NavisionGreat Plains
Microsoft is Taking More From ISV Opportunities
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CTS6-01 Introduction.ppt 25
Microsoft’s ISV Strategy
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CTS6-01 Introduction.ppt 26
Reduce Dependence onShrinking Opportunity
Diversify
Increase Exposure to theMarket
Find New Growth Areas- Server-side- Linux- Lower Cost Solutions
A Software Vendor Strategy to Prosper and Grow
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CTS6-01 Introduction.ppt 31
What is e-business on demand?Portal Based CollaborationEnterprise Portals
BREAKBusiness Integration Fast and SureWhy WebSphere is Better Than .Net
LUNCHProtect Yourself! Security CountsIt’s Time to Consider LinuxIncrease Productivity With WebSphere StudioEfficient Teams Develop Solutions Faster
BREAKImprove Access to InformationUnder the Covers – The Integration BusCut Costs in the Infrastructure
9:00 - 9:309:30 - 10:00
10:00 - 10:3010:30 - 10:4510:45 - 11:3511:35 - 12:3012:30 - 1:30
1:30 - 2:002:00 - 2:152:15 - 2:402:40 - 3:153:15 - 3:303:30 - 3:453:45 - 4:154:15 - 5:00
Agenda
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CTS6-01 Introduction.ppt 32
Friendly Finance on demand Operating Environment
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CTS6-01 Introduction.ppt 39
Developers: http://www.ibm.com/developerworks/
Business Partners: http://www.ibm.com/partnerworld/
Competitive Material (IBM only): w3.software.ibm.com/competitionw3-3.ibm.com/software/websphere/websites.nsf/View2LevelContent/84CAC22C127AB44C85256BE600557ED7?OpenDocument
e-business on demand Competitive Seminar Materialsand Registration: http://www-3.ibm.com/software/info1/websphere/partners/index.jsp?tab=ed/competitiveroadshow
IBM
For Additional Information
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CTS6-01 Introduction.ppt 40
Thank you