e-business on demand Competitive Technical Briefing Brought to You by the IBM Competitive Technical Laboratory

Transcription

1 e-business on demand Competitive Technical Briefing Brought to You by the IBM Competitive Technical Laboratory

2 What is an on demand Business? 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! CTS6-01 Introduction.ppt 2

3 Business Integration is the Top Customer Priority 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 CTS6-01 Introduction.ppt 3

4 Computing Environment CTS6-01 Introduction.ppt 4 Financial & Delivery Models Business Design How to Become An on demand Business

5 How to Become An on demand Business Step by step process improvements Business Design Financial & Delivery Models Traditional ownership or pay as you go Computing Environment on demand operating environment CTS6-01 Introduction.ppt 5

6 Small Advantages are Magnified Company A Company B $100M Revenue $ 83M Cost $ 17M Profit $100M Revenue $ 83M Cost $ 17M Profit Achieves 1% Difference in Effectiveness 1% increase in new customers 1% more business with each customer 1% reduction in costs What Happens? CTS6-01 Introduction.ppt 6

7 Small Advantages are Magnified Company A Company B $100M Revenue $ 83M Cost $ 17M Profit $100M Revenue $ 83M Cost $ 17M Profit $102M Revenue $ 82M Cost $ 20M Profit $ 98M Revenue $ 83M Cost $ 15M Profit CTS6-01 Introduction.ppt 7

8 on demand Operating Environment 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 CTS6-01 Introduction.ppt 8

9 on demand Operating Environment for Servers People Integration WebSphere Portal Server Lotus Collaboration Process Integration WebSphere Business Integration Data Integration DB2 Information Integrator DB2 Content Manager Programming Environment WebSphere Application Server Rational and WebSphere Development Tools Deployment Environment Tivoli System Management Virtualized Resource Allocation CTS6-01 Introduction.ppt 9

10 on demand Operating Environment Requirements Runs on any server People Integration Process Integration Data Integration Supports any client Open standards Programming Environment Interoperates with existing systems Scalable and reliable Deployment Environment Buy, don't build World class support CTS6-01 Introduction.ppt 10

11 on demand Operating Environment Work With What You Have Browsers Customer Applications Legacy Systems Windows.NET People Integration Process Integration Data Integration Packaged Applications Linux Programming Environment Other Environments Mobile Devices Central and Departmental Servers CTS6-01 Introduction.ppt 11

12 on demand Operating Environment - Competitive Perspective IBM on demand Microsoft.Net Oracle Suite SAP NetWeaver Open Standards JAVA Standards.NET proprietary JAVA Standards Moving from proprietary to JAVA Integration WebSphere DB2 Lotus Rational.NET SQL Server Exchange, Etc Windows only 9i Application Server 9i Data Base Server Collaboration Suite NetWeaver Automation Tivoli Cross platform Windows only Not in this business Not in this business Virtualization Logical partitioning Blades Clusters Storage Virtualization Not in this business Not in this business Not in this business CTS6-01 Introduction.ppt 12

13 IBM is the Largest Middleware Vendor 2001 Revenue Software Opportunity (2006) = $290B '02 - '06 CGR = 9% Microsoft $10.7B IBM $2.6B HP $1.1B Sun $1.0B IBM $11.0B Oracle $6.3B Microsoft $3.1B Computer Associates $2.5B Microsoft $9.4B SAP $4.0B Oracle $1.7B PeopleSoft $1.2B Operating Systems $35B 7% CGR Middleware $107B 9-10% CGR Applications $148B 9-10% CGR Note: IBM middleware revenue includes IGS transactions Source: IBM analysis based on Industry Reports / Market Research, 1/03 CTS6-01 Introduction.ppt 13

14 Middleware Market Data Management $32B 9% CGR IBM Rank: #1 Middleware Opportunity (2006) = $107B '02 - '06 CGR = 9-10% Systems Management $32B 8% CGR IBM Rank: #1 Application Development Tools $14B 5% CGR IBM Rank: #1 Business Process Integration $4B 21% CGR IBM Rank: #1 Transaction Management and Integration $17B 10% CGR IBM Rank: #1 Messaging, Collaboration and e-learning $8B 13% CGR IBM Rank: #1 Source: IBM analysis based on Industry Reports / Market Research, 1/03 CTS6-01 Introduction.ppt 16

15 Recent WebSphere Market Sweep Application Server: WebSphere #1 37% BEA 29% Portal: WebSphere #1 13% SAP 10% Message: WebSphere #1 81% Tibco 5% Broker: WebSphere #1 17% Tibco 8% Overall AIM: WebSphere #1 31% BEA 8% Source: Gartner / Dataquest 2003 CTS6-01 Introduction.ppt 17

16 IBM Express Products for Small and Medium Businesses - Low Price, Easy to Install Product Offering WAS Express WS Portal Express WS Portal Express Plus (includes Sametime & Quickplace) WS Commerce Express Price (includes subscription & support) $25/user $85/ user $135/ user $20K per CPU WS Business Integration Connect Domino Utility Express Domino Collaboration Express DB2 Express Tivoli Storage Resource Manager Express $625 per connection AND $625 per server (includes dev tools) $2,500 per CPU $119/user $124/ user AND $624 per server $65/client (desktop, laptop, workstation) CTS6-01 Introduction.ppt 18

17 Key Trends Investments in Your on demand Operating Environment Switch to Portal Based Collaboration Deploy an Enterprise Portal Integrate Business Processes End to End Select WebSphere for Your Server Side Environment Protect Yourself! Security Can No Longer Be Ignored It s Time to Consider Linux Improve Access to Information Increase Programmer Productivity With WebSphere Studio Make Your Development Teams More Efficient Build an Integration Bus Cut Costs in the Infrastructure Improve business responsiveness and agility, cut I/T costs and time to market CTS6-01 Introduction.ppt 19

18 A Message... for Software Vendors and Solution Providers CTS6-01 Introduction.ppt 20

19 Microsoft is Taking More From Each PC Sale Total Revenue, $B Microsoft desktop revenue / PC Revenue Growth 28% 24% 36% 50% 41% 75% 71% 36% 47% 56% % % % % % % Revenue Growth 10% Ballmer pioneered the measurement 'dollars per desktop.' Source: IT Industry Average GMV 0H02, Microsoft & Intel CHQ MI & Finance analysis of Wall Street data, PC Shipments: IDC 12/01 Forecast $/Unit CTS6-01 Introduction.ppt 21

20 Leaving Less For Others 1500 $1343 Projected industry average revenue / PC Unit $1050 Revenue, $/PC OEM Oppty: $900 - $1100 OEM Oppty: $600 - $800 Microsoft plus constant Intel 0 Microsoft + historical rate Source: PC Shipments: IDC 12/01 Forecast, IT Industry Average GMV 0H02, Microsoft & Intel CHQ MI & Finance analysis of Wall Street data CTS6-01 Introduction.ppt 22

21 Microsoft is Taking More From Enterprise Budgets Changes 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 CTS6-01 Introduction.ppt 23

22 Microsoft is Taking More From ISV Opportunities Microsoft application sales are $500M per year Built on Great Plains and Navision acquisitions Competing with former ISV partners 150 bcentral 100 Business Solutions Revenue History Great Plains Navision MS CRM $M Q00 4Q00 1Q01 3Q01 1Q02 3Q02 2Q01 4Q01 2Q02 4Q02 CTS6-01 Introduction.ppt 24

23 Microsoft s ISV Strategy CTS6-01 Introduction.ppt 25

24 A Software Vendor Strategy to Prosper and Grow Reduce Dependence on Shrinking Opportunity Diversify Increase Exposure to the Market Find New Growth Areas - Server-side -Linux - Lower Cost Solutions CTS6-01 Introduction.ppt 26

25 Agenda What is e-business on demand? Portal Based Collaboration Enterprise Portals BREAK Business Integration Fast and Sure Why WebSphere is Better Than.Net LUNCH Protect Yourself! Security Counts It s Time to Consider Linux Increase Productivity With WebSphere Studio Efficient Teams Develop Solutions Faster BREAK Improve Access to Information Under the Covers The Integration Bus Cut Costs in the Infrastructure 9:00-9:30 9:30-10:00 10:00-10:30 10:30-10:45 10:45-11:35 11:35-12:30 12:30-1:30 1:30-2:00 2:00-2:15 2:15-2:40 2:40-3:15 3:15-3:30 3:30-3:45 3:45-4:15 4:15-5:00 CTS6-01 Introduction.ppt 31

26 Friendly Finance on demand Operating Environment CTS6-01 Introduction.ppt 32

27 For Additional Information Developers: IBM Business Partners: e-business on demand Competitive Seminar Materials and Registration: Competitive Material (IBM only): w3.software.ibm.com/competition w3-3.ibm.com/software/websphere/websites.nsf/view2levelcontent/84cac22c127ab44c85256be600557ed7?opendocument CTS6-01 Introduction.ppt 39

28 Thank you CTS6-01 Introduction.ppt 40