Warren Buffett: I don't think there's any company that's done a better job of laying out where they're going to go and then having gone there.

Transcription

1 Warren Buffett: I don't think there's any company that's done a better job of laying out where they're going to go and then having gone there. Ginni Rometty, CEO IBM: IBM today is the leader in enterprise cloud, a position we have enhanced through investments of $7 billion on 15 acquisitions, most notably SoftLayer in We provide the full spectrum of cloud delivery models infrastructure as a service, platform as a service, software as a service and business process as a service. IBM s cloud capabilities are built on 1,500 cloud patents and supported by thousands of cloud experts. Eighty percent of Fortune 500 companies use IBM s cloud capabilities.

2 IBM Certified Managed Service Provider A Joint Venture: ABC Services and Data Storage Corporation 2012 IBM Corporation

3 Overview Fast Facts Trends and Growth of Cloud Solutions Benefits of Providing Cloud The Realities Why Partner Value Proposition Overviewing our Partner Program Next Steps

4 Fast Facts COMPANY: SAMPLE CLIENTELE: A JV Partnership: ABC & DSC Headquarters: Melville, NY JV Formed: August 2012 DSC: 2001 ABC: 1994 Data Centers: NY, MA, IL IaaS, SaaS & PaaS IBM MSP Partner CUSTOMERS & SALES: Combined Clients: 700+ active customers 3-yr Customer Retention Rate: 90% + Current Monthly Subscription Billing per Customer: $500 $25,000+ Primary Industries: Financial, Distribution, Education, Government, Business, Healthcare and Manufacturing National Distribution Network of Partner s

5 The Trends 2012 IBM Corporation

6 The Industry Outlook Fast Facts $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 Projected Public Cloud Spending US$ (billions) IaaS PaaS SaaS Bpaas Spending Amounts in US$ (billions) Infrastructure-as-a-Service (IaaS) Platform-as-a-Service (PaaS) Software-as-a-Service (Saas) Business Process-as-a-Service (BPaaS) Source: Forrester Research, Inc.

7 Forward Thinking The most forward-thinking companies also see cloud as a force that will impact their business models

8 For the first time, CEOs identify technology as the most important external force impacting their organizations 1 Factors impacting organizations: 1. Technology factors 2. People skills 3. Market factors 4. Macro - economic factors 5. Regulatory concerns 6. Globalization Source: IBM CEO Study 2012 Speed Value 90% view cloud as critical to their plans Extended Reach 1Billion Smartphones and 1.2 billion mobile employees by 2014 Responsiveness 20B+ Intelligent business assets New Insights 2.7ZB of digital content in 2012, up 50% from 2011

9 Partner Financial Benefits Increase Same Client Sales Grow the Recurring Billing Average Client Billing: 3,000 5,000 / Month Grow the Managed Service Business Excellent Margins Long Term Client Contracts Non Recurring Set Up Fees

10 Today s marketplace realities and business environment 2012 IBM Corporation

11 Today s marketplace realities Significant uncertainty remains among businesses Many corporations are still in cash conservation mode Continued pressure on IT spending Stock Market Volatility Tight Credit Markets Economic Uncertainty

12 Today s business environment Companies are looking for: Hard dollar savings (no soft costs) 12 month ROI Much slower technology refresh Companies that are publicly traded are interested in: Pushing expenses to the next quarter/year Meeting Wall Street s expectations Financing (to keep cash on hand)

13 IBM PureFlex System value propositions 2012 IBM Corporation

14 Development Management POWER i Infrastructure-as-a-Service Middleware Deployment Applications Optimizes the complete solution PaaS/IaaS: All hardware and software components factory integrated and optimized Born virtualized and ready for cloud Storage tuned to data needs Hardware directly tuned to the software System resource allocation uniquely optimized per selected pattern for each application workload Virtualization Pre-configured, pre-integrated infrastructure systems with compute, storage, networking, physical and virtual management. Storage Networking Servers

15 What does it mean for you? Client Benefits

16 The PureFlex System Value Proposition Capturing and automating what experts do from the infrastructure patterns to the application patterns Deeply integrating and tuning hardware and software in a ready-to-go workload optimized system Making every part of the IT lifecycle easier with integrated management of the entire system and a broad open ecosystem of optimized solutions

17 The Business Case (Note that acquisition costs are a small part of overall TCO) 10%-50% Acquisition Cost Deployment Downtime Security Maintenance Software TCO For 50%-90% Power Asset Management Space modern IT platforms, 30% of the total cost is the cost of acquiring the equipment. The balance is for IT labor/services to configure, maintain, upgrade, reconfigure, and ultimately decommission the equipment. -- IDC IT organizations are spending from 70-80% of their total IT budgets on maintenance and ongoing operations. -- Forrester

18 Current Environment 2012 IBM Corporation

19 Cloud and Virtualization: Top of Mind Solutions Gartner CIO priorities Cloud has rocketed to #1 CIO priority in just 3 years Source: Gartner Reimagining IT: The 2011 CIO Agenda

20 Many clients start the cloud journey with a Hybrid cloud Clients are looking for benefits from Hybrid clouds Higher availability of systems and applications Lower total costs and better utilization of hardware Labor savings and improved quality of IT services Secure start behind enterprise firewall And are preparing infrastructure to build the foundation Highly standardized infrastructure Virtualization Multi-tenancy Service catalog Dynamic resource scaling Half of leading cloud adopters are planning to include multiple systems in their cloud infrastructures

21 When assembling any solutions, there are concerns that need to be addressed Integration Security Time to Value Management What if these were taken care of for you?

22 The time has come for a new breed of systems Expert integrated systems: Systems with integrated expertise that combine the flexibility of a general purpose system, the elasticity of cloud and the simplicity of an appliance Cloud Ready, Cloud Enabled Systems Born Virtualized and ready to go on Day 1

23 PureFlex System is Integrated by design Tightly integrated compute, storage, networking, software, management, and security Expert Integrated Systems Storage Networking Compute Virtualization Security Tools Applications Management Flexible and open choice in a fully integrated system

24 Built-in Expertise in IBM PureFlex System Compute & Infrastructure Storage Across all system resources Engineering expertise: Choice of architectures, hypervisors and operating systems No compromise design with system level upgradability Runs Windows, Linux, AIX, and IBM i Optimization expertise: Balance performance and cost with intelligent tiering Increase utilization through virtualization of new and existing storage Critical application performance increase of up to 300 percent Expert Integrated Systems Networking Scalability expertise: Respond to changing requirements by adding bandwidth on demand Eliminate bottlenecks for demanding applications Up to twice the application performance with reduced latency Management Automation expertise: Speed time to market through faster service deployment Manage workloads while the system automatically manages resources Days to minutes reduction in VM deployment time

25 Management Integration across physical and virtual resources Move from operational expense to innovation Cloud-ready management integration across compute, storage and networking resources leveraging decades of IBM management expertise Enables new capabilities such as virtualizationaware compute node maintenance automation Fully virtualized platform that changes how you can deliver applications and services Delivery of new services and applications in minutes and hours instead of days and weeks Single skill set across leading industry hypervisors and operating systems, processors, storage and networking protocols Skills used with one hypervisor today can be applied to another hypervisor tomorrow Virtualization Compute Management Security Storage Applications Networking Physical Virtual Workload

26 IBM PureFlex System: Cloud-Ready, Cloud Enabled IBM IBM Corporation

27 IBM Cloud Solutions Private Cloud entry points at any level Orchestrate with advanced cloud IT without Boundaries Integrate your virtualized foundation Automated resource balancing Virtual image management Automate with entry cloud Deliver self-service provisioning Automate IT service deployment Simplify administration Automated IT service deployment Full lifecycle management, metering & chargeback Cloud Capabilities

28 Getting There: Easier than you think! IBM IBM Corporation

29 Partner Program Overview 2012 IBM Corporation

30 Partner Program Highlights We Made the Investment: Leverage Us Share in the Recurring and Non Recurring Revenue Full support: ROI analysis Proposal Joint calls Cooperative Marketing dollars Clients can trial IaaS and PaaS

31 Independent Software Vendor Develop on a vlpar for as little as $500 per month Provide S-a-a-S T&D as a variable equipment cost Spin up demonstrations in minutes

32 Financial Benefits of Providing Cloud Services 2012 IBM Corporation

33 Selling Hardware Small Range 50%-90% Large Range Systems Size $ 30,000 - $ 50,000 $ 100,000 $ 400,000 Averaging $40,000 $250,000 Partner Margin 25% 15% Partner Profit on Equipment $10,000 $37,500 Partner Profit on Installation $5,000 $5,000 Year 4 Maintenance $5,000 $5,000 Partner Profit % 20% 20% Year 4 Partner Profit $1,000 $1,000 Year 5 Maintenance $5,000 $5,000 Partner Profit % 20% 20% year 5 Partner Profit $1,000 $1,000 Total Profit $17,000 $44,500 10%-50% Deployment Downtime Acquisition Cost Power Security Maintenance Software Asset Management Space

34 IaaS: The 60 Month Analysis Small Range 50%-90% Large Range $ 30,000 - $ 50,000 $ 100,000 - $ 400,000 Average Sale $ 40,000 $ 250,000 Invoice to the Client Monthly $ 2,267 $ 10,000 Cost from SIAS Installation $ 1, $ 1, Recurring $ 1,700 $ 8,500 Partner Margin 25% 15% Gross Profit $ 34,005 $ 90,000 Installation Profit $ 2,000 $ 3,000 Total Profit $ 36,005 $ 93,000 10%-50% Deployment Downtime Acquisition Cost Power Security Maintenance Software Asset Management Space

35 Why a Partnership is Attractive 2012 IBM Corporation

36 One Time Sale vs Recurring Revenue Selling Equipment IaaS Upfront dollars Clients Cap Ex Purchasing for Max Load One Time Sale Ahead of the curve Clients Ops Ex Client pays as they grow Seasonality Benefit 2x s the partners profit Increasing the value of your company MRR It s Sticky CIO s are ranking Cloud in their top 3 priorities

37 ASCDI Member Benefits Test & Dev for a Member: Member can request a complementary T&D vlpar installation No clients after one year Comp ends Member prospects or clients: Members receive highly discounted rates for the first two clients up 40% discount off of rates

38 Next Steps Call or , we will reach out to you as well Non-Disclosure Agreement Discuss marketing ideas together: let s make sure it s right Partnership Agreement Build a Marketing Plan together Training

39 Contact Information for Presenters Chuck Piluso, 401 Franklin Avenue Garden City, New York x102 Matthew Grosso, 401 Franklin Avenue Garden City, New York