IBM System i

i want a real business system.

i want control.

i want an i.

System i Vertical Industry Program

Kevin Patterson

Director, System i Sales

IBM Power Systems

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Strategic positioning for mid-market leadership

System i Opportunity for Growth

Growth

Product & Portfolio

Historical Success

System i is rooted in SME…

Reaching the next summit requires …influencers!

Small and medium enterprise is where the growth is…

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System I DormantNo purchase in 3+ years

ACTIVE

Business SystemsBusiness Systems

Dormant VIP

i5OS Linux

System i Active

New BusinessMid Market Install Base

Primary RTM:

FTF, BPs, .comPrimary RTM:

BPs and ibm.com

Potential Opportunity:

$3.8BPotential Opportunity:

$2.4B

VIP - i5OS VIP – Linux

Primary RTM:

Influencers, BPs, FTF

Primary RTM:

Influencers, BPs, .com

Potential Opportunity:

Practically UnlimitedPotential Opportunity:

Practically Unlimited

Vertical Industry Program (VIP)

Vertical Solutions Unit

Driving System i in Small and Medium Enterprise

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System i Vertical Industry Program (VIP)

Internally known as PowerNet

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� A marketing and sales execution initiative targeting select sub-industries with System i solutions that deliver unique advantages

� Return to a growth business model that created the large mid-market and once-loyal install base we are now defending

� Communities of ISVs, resellers, distributors, IBM development, marketing and sales aligned to command a sub-industry

What is STG VIP?

STG Vertical Industry Program (VIP) Initiative

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The STG Vertical Industry Program (VIP) 2007

� Expanding the PowerNet Model within the STG product portfolio� 2005 - The program is launched predominately in the USA as the Franchise Play which

solely includes IBM System p

� 2006 – The Franchise Play evolves into the IBM PowerNet Program and includes a IBM TotalStorage element. The program is successfully launched in 11 countries in 1H06.

� 2007 – The IBM System p PowerNet Program expands in the existing countries and is also launched in five additional countries. The program is executed in close cooperation with IBM TotalStorage. IBM System i launches the IBM Vertical Industry Program (VIP). The two programs, very similar in content and objectives are linked on a worldwide and local level. Discussions are initiated to create a cross STG PowerNet / VIP Program.

System p™System i™

TotalStorage

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� Dedicated resources

– Dedicated country teams

– Direct ownership to create and drive pipeline in the targeted market

– Business objectives directly linked to success of their VIP

� Funding

– Incremental funding for dynamic marketing and reference material

– Worldwide support with MI, “sales kits,” white papers and video references

� Partner Community

– Strengthen partnerships / dedication with our influencer community

– Help our partners build, strengthen their offerings and value

– Clarify support structure through IBM partners with competitive margins

STG VIP Initiative

What will a System i VIP look like?

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STG VIP InitiativeAnatomy of a sub–industry to command the market

Key InfluencerHMS, AHS, Blueware,

Lavendar & Wyatt

Solutionson

System i

Opportunity

690,000 U.S. physician’s offices <10 docs

75-50% manual process / paper charts

Federal government weighing in

Significant Opportunity

Clear ValueGovernment compliance

Reduce labor cost

Critical patient data

sharing

ClearValue

Proposition

The Sub-Industry Markets

Small Physician’s Office in US, Billing companies

Electronic Records Management or Patient Billing

Healthcare

Community of buyers, common

challenges and behaviors

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System i VIP DeploymentSolidification of Targeted Opportunity

AmericasNortheast

Asia Pacific

Southwest

2007 System i Objectives

Deploy to 15 Countries

80+ Distinct Local Vertical Markets

2 to 4 ISVs per PowerNet

225 ISVs / RSI “System i PowerNet Partners”

INDIA-- Retail Apparel-- Small Healthcare

-- Office Automation-- Textile

AUSTRALIA / NEW ZEALAND-- Retirement / Pension

-- Stadium Ticketing--Gaming / Hotel Industry

--Car Dealership

China:-- GMB Banking-- Insurance

--Telecom-- Electrical / Power

--Govt Housing-- Office Automation

JAPAN-- Footwear Manufacturers -- Fabricated Metal

-- Bakery Products-- Mid-Mrkt Retail Sales

--Agriculture

US-After Market Parts Distributors

-Heavy Construction-Automobile Aftermarket Dist.-Local Government

-Custom Specialty Builders-Radio/TV Broadcasting

-Next Generation Networks-Food/Beverage Distributors-Clinical / Mental Health

-Labor Unions-Medical Claims

-<100 Bed hospitals / Clinics-Doors & Custom Cabinets Makers

-Heavy Equipment Rental/Dealerships-John Deer Dealerships-Less than Full Load Trucking

-Small Law Offices-Metal Fab & Assembly

-Foreign owned part dealerships

Latin America-- Agri Products, Fruit Producers- Next Generation Networks

SPIGIT- Textile Manuf.- Bldg materials Trade-Bakery

-Small Wholesale Dist

France / BeNeLux-Fruit / Veg Distr

-Wine, Meat Dist-Food Producers-Logistics

-Textile

UKISA / Germany-Government-Banking & Insurance

-Publishing-Healthcare

- Retail

Nordics / CEMAAS- Healthcare- Pharma Suppliers

- Retail Banking- Freight

ITALY-Mechanics-Transportation/Logistics

-Food / Beverage-Construction

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Building a VIP (PowerNet) to Command a Sub-Industry – Labor Unions

V. Global Deployment / Expansion

III. Supporting MIII. Value PropI. Opportunity

� NY, MI, AK >20% employees belong to a union

� 85% Labor Unions have Managed pension funds

�No dominate player in this market� Industry sweet spots:

1) Public Sector (Govt )2) Transportation / Utilities3) Telecom

• Feature rich solution

• Market with no clear dominate player

• Customer set not biased to WinTel

• Expense prohibitive for IT resources.

• Leverage infrastructure abilities of system i

• Bio-Metrics

• IP Telephony• Web Hosting / Collaboration• Total Solution, multi purpose system.

•Telephony

•Conferencing•Voicemail•Call Center

IV. Creating the VIP (PowerNet)

•System I

•Lotus Web Sphere•Lotus Domino•Partitioning•i5OS

•Labor Unions specific design•Pension Management•Annuity Management

•Security

Focus on:1) Federal, State, Local Govt2) Transportation & Utilities3) Telecom

Labor UnionTarget areas

System i Vertical Industry Program (PowerNet)

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IBM and CSGroup Talent Sport division are teaming to:

Elevating customer service to a new

industry level

STG VIP InitiativeExpanding our PowerNets – Sports Stadium & Ticketing Industry

IV. Creating the STG VIP

V. Global Deployment

III. Supporting Market IntelligenceII. Value PropI. Opportunity

�10 Major Sporting Clubs with over 400,000 yearly attendees, growing all over AP�Current processes are manual, representing huge opportunity for automation and management

�Partner with Sports Club owners to

automate time consuming ticketing

processes, power a new web sales

ticketing service, and improve overall

service for customers.

•System i

•Partitioning

•I5/OS

•Virtualization

•Integration Platform

•Ticket Management

•Merchandise &

Hospitality Management

•Ticketing customer

service and support

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• Targeted Customers / Locations / Contacts – Detailed

• Other / All Key Sub-Industry Influencers

• Change Agents / Grants / IT Funding Sources

� 66 Page Detailed MI Document

on Every Aspect, Influencers,

Change Agents/Spending trends,

and key Targets for Sports

Stadium and Ticketing in Asia.

20 Completed, Every VIP will be done.

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System i VIP Country Ownership Teams

Country Ownership Team

COT Leader

VIP Demand Generation VIP Sales Execution

� Leader for all Sales and Marketing VIP Activity

� Owns pipeline progression, revenue attainment

� VIP Marketing ROI results

� PN demand generation, out-quarter PN pipeline

� Owns co-marketing, event coordination, sales capsules, sales initiatives

� Sub-Industry Community development with key influencers

� MI, Development of key Value Propositions, presentations, documents

� Trade Magazines, Web, events, press and analyst activity

� Country leadership for select vertical sales activity

� Sub-industry influencer development and ultimate owner of revenue results

� Customer and ISV Sales Engagement, pipeline progression, execution items

David Kinsey

VIP BUETim Wilson

AG Support

Jacqueline Shahin

SW Support

Kim Fackelman

AP Support

Jon Purington

VIP Metrics

Joe May

NE Support

Svieta Reznik

Emerging Countries

Debra Diaz

New Accounts

WW VIP Sales Execution Team

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System i VIP Primary Contacts

India:

Country Team Lead: Rahul Bindal

BSS Samir Venugopal

ANZ:

Country Team Lead: Roshan Unantenne

BSS Justine Kennedy

China:

Country Team Lead: David Chan

BSS Hui Guang Li

Japan:

Country Team Lead: Toshiaki Ohde

BSS Saori Kameoka

BSS Kenji Z Mori

BDSM Tsugio Moriya

Mahesh RamanayakeAP Marketing and Solutions Managermaheshr@au1.ibm.comTel: +61-2-9354-7902(Mobile) +61-421-055-411Tel/Fax: +61-2-9440-9521

System i VIP Country Ownership Teams

System i VIP AP Leader

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