IBM Software Strategy Julie KING

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1 IBM Software Strategy Julie KING IBM Vice President & Distinguished Engineer 2009 IBM Corporation

2 Software Strategy & 2015 Roadmap Agenda Quick overview of the key brand capabilities Lotus Information Management WebSphere Tivoli Rational Putting it all together to address our clients' needs Industry Solutions Cloud Computing Smarter Planet Q&A

3 Working Smarter & Dynamically Adaptive Collaboration Knowledge Worker Informational Worker External Partners Universal Access Messaging Communicating Connecting Integrating Lotus Notes Lotus Domino Lotus Sametime Lotus Sametime Unyte Lotus Quickr Lotus Connections Lotus Mashups WebSphere Portal Open Standards Architecture Business Applications Information Management

4 Connecting & Empowering People (Connect and Collaborate) Lotus SameTime SameTime Unyte Real-time Collaboration Web Content Management WebSphere Portal Lotus Web Content Management Databeam & Collaborative Applications Social Media Lotus Notes Lotus Connections New Delivery Models LotusLive Lotus Foundations

5 LotusLive! Web Conferencing LotusLive Meetings A full-featured, easy to use Web conferencing service LotusLive Events Provides tools to create, manage and conduct webinars for up to 999 attendees Collaboration LotusLive Engage An integrated suite of tools that combines your business network with collaboration and conferencing services LotusLive Connections Combines your business network with collaboration services LotusLive Notes IBM's flagship Lotus Notes , calendar, contact management and instant messaging LotusLive inotes Web-based , personal calendar and contact management

6 Mastering Information to Optimize Business Results A Flexible Platform for Managing, Integrating, Analyzing and Governing Information Transactional & Collaborative Applications Integrate Analyze Business Analytic Applications Extreme Data Manage Master Data Cubes Streams External Information Sources Data Content Streaming Information Govern Data Warehouses Quality Lifecycle Security & Privacy

7 BIG DATA Internet Scale Moving Beyond the Traditional Warehouse Traditional Warehouse Traditional / Relational Data Sources Database & Warehouse At-Rest Data Analytics Results Streams Non-Traditional / Non- Relational Data Sources In-Motion Analytics Ultra Low Latency Results Internet Scale Non-Traditional/ Non-Relational Data Sources Traditional/Relational Data Sources Internet Scale InfoSphere BigInsights Data Analytics, Data Operations & Model Building Results 7

8 IBM has evolved its strengths in IT software, targeted at the CIO, to maximize the combined value for IT and business professionals Business Professional Business professionals have the business process expertise Business Professionals Need Agility and Efficiency Rapid innovation without replacing applications Control of the business model and business processes Integration of horizontal processes Visibility into technology-enabled business activities Flexible integration of people, processes, and information IT Professional IT professionals know how to implement and run applications IT Professionals Need Agility and Efficiency Efficiently manage hundreds of applications Safely manage terabytes of data Consolidate and simplify infrastructure to reduce costs Deliver new custom or COTS vertical applications Improve service levels of existing applications Stability simplifies efficient operations Source: Surveys from IBM 's SOA Executive Summary 8

9 Increasing Business Agility Commerce WebSphere Commerce Business Process Optimization Web Portal WS Portal WS Process Server WS Modeler/Monitor WS Business Events WS Ilog BRMS Web Application Infrastructure WS Application Server WS Extreme Scale WS Cloudburst Connectivity Transaction Processing WS Message Broker WS ESB WS Datapower WS Partner Gateway WS Adapters CICS MQ

10 Software is the key to differentiation Aerospace and Defense Faster time to market and reduced manufacturing cycle time More efficient, lower cost, flexible designs Improved program management cost, schedule and quality Increased customer satisfaction and loyalty Electronics in the new economy Differentiated products based on consumer-driven innovation Leveraged customer insights in product development Increased throughput capacity Improved portfolio profitability Innovation within the enterprise as well as with partners and alliances Automotive Total manufacturing cost reduction Reduced warranty costs Increased customer loyalty through higher product quality Improved asset utilization Flexibility to build various products on demand Smarter Products & Services Energy and Utilities Enhanced plant lifecycle value with integrated information from plant design and construction Improved utility energy efficiency through near real-time visibility of consumer energy usage Improved efficiency and operational performance Software must be approached as a mission-critical business process

11 Transforming Software & Systems Delivery Into An Outcome-Driven Business Process

12 Using Rational Team Concert To Improve Productivity Integrated RTC Build Services Consolidates development platforms Provides centralized source data management Expanded Build metadata for comprehensive view

13 Use Rational Team Concert To Manage Projects RTC Dashboards Provide real-time consolidated views of project progress for quick, easy consumption Tracked to individual RTC Users or Developers Multiple views with drill down capability to individual work items

14 IBM's use of Rational Asset Manager: Promoting One Common Asset Repository for Reusable Assets Common Taxonomy And Metadata Standards AAB orchestrated a shared funding model for iram amongst the shareholders to fund the deployment 3Q07 & earlier AAB Library design SOAR pilots Legacy Asset Transformation workgroup enabled teams to go Into production IRAM fully integrated In the daily operations 4Q07 Identified team in India for iram pilot AAB SC funded iram becomes An Enterprise Application Fully hosted by our CIO Team 2Q08 9 teams in production Over 3000 assets 4Q communities Over 72,000 assets Downloads: over 7,000 /wk Searches: over 29,000 /wk 4Q communities Over 55,000 assets Downloads: over 4,300 /wk Searches: over 40,000 /wk 4Q08 68 communities Over 26,000 assets Over 1800 downloads/week Over 23,000 searches/week

15 Driving Operations Effectiveness and Efficiency Tivoli Monitoring Tivoli Workload Scheduler Tivoli Composite Application Manager IBM Cloudburst Tivoli Storage Manager Tivoli Storage Productivity Center SAN Volume Controller SANergy Tivoli Asset Management Distributed Systems Management Storage Service Management 2006 Asset Management IBM zsecure Omegamon 2004 Mainframe Systems Management Tivoli NetView Tivoli Netcool Tivoli Access Manager Tivoli Identity Manager Network Service Management Security Service Management Dascom

16 Software Strategy & 2015 Roadmap Agenda Quick overview of the key brand capabilities Lotus Information Management WebSphere Tivoli Rational Putting it all together to address our clients' needs Dynamic Infrastructure and Cloud Computing Industry Solutions Smarter Planet Q&A

17 IT Transformation Roadmap More dynamic infrastructure Reduce infrastructure complexity Reduce staffing requirements Improve business resilience (manage fewer things better) Improve operational costs/reduce TCO Remove physical resource boundaries Increased hardware utilization Allocate less than physical boundary Reduce hardware costs Simplify deployments Standardized Services Dramatically reduce deployment cycles Granular service metering and billing Massively scalable Autonomic Flexible delivery enables new processes and services Dynamic Automate Shared Virtualize Simplified Consolidate 17

18 Reducing infrastructure and labor costs through technology: the cloud economics Labor Leverage Infrastructure Leverage Virtualization of Hardware Utilization of Infrastructure Automation of Management Standardization of Workloads Drives lower capital requirements Virtualized environments only get benefits of scale if they are highly utilized Take repeatable tasks and automate Fewer options = more automation possible = fewer manual tasks

19 Cloud Computing A user experience and a business model Standardized offerings Rapidly provisioned Flexibly priced An infrastructure management and services delivery method Virtualized resources Managed as a single large resource Delivering services with elastic scaling Banking Similar to Banking ATMs and Retail Point of Sale, Cloud is Driven by: Self-Service Economies of Scale Technology Advancement Retail IT 19 IBM Confidential

20 Today there are three primary delivery models that companies are implementing for cloud Enterprise Traditional Enterprise IT Private Cloud Hybrid Cloud Public Clouds Private Cloud IT activities/functions are provided as a service, over an intranet, within the enterprise and behind the firewall Key features include: Scalability Automatic/rapid provisioning Chargeback ability Widespread virtualization Hybrid Cloud Internal and external service delivery methods are integrated, with activities/functions allocated to based on security requirements, criticality, architecture and other established policies. Public Cloud IT activities/functions are provided as a service, over the Internet Key features: Scalability Automatic/rapid provisioning Standardized offerings Consumption-based pricing. Multi-tenancy Source: IBM Market Insights, Cloud Computing Research, July 2009.

21 Image Management is Core to Managing a Virtualized Data Center & Clouds Images fast becoming the core object for deployment in datacenters bypasses installation problems, provides faster time to value, better availability, disaster recovery. Easy way to boot, store, distribute, copy software- OS & Applications Installation is as simple as a copy operation. (Configuration still needed) Fundamental mechanism for deploying cloud services (e.g. Amazon) Companies beginning to ship images to solve installation problems. Images Require Management - The New IT Challenge (Image Sprawl & Governance) Proliferation of virtual images in customer environments (just copy a file). Customer need a way or organizing, securing, managing deploying these images to the various virtualized platforms in a scalable manner. Customers need a way of managing the virtual images once they are deployed. This includes monitoring, updating, tracking changes, auditing etc. Dormant images need maintenance too. (E.g. security patches) Customers need to manage the virtual images created by them in addition to any vendor bought images. Customers needs to integrate their images that are deployed with their processes and management tools

22 25 billion Number of global trading systems that are under extreme stress, handling billions of marketplace data messages each day 40% to 70% Loss of electrical energy around the world because of inefficiency 1 trillion Number of devices that will be connected to the Internet by 2011 US$4 trillion Average daily volume in the world s currency marketplaces Need for Smarter Planet Across the globe we must confront a crushing 78% set of challenges Percentage of CIOs who want to improve the way they use and manage their data 80% Percentage of digital data growth that is predicted to be unstructured and require significant effort to understand and analyze 10x Amount that digital data is projected to grow by 2011

23 By 2011, the world will be 10 times more instrumented then it was in Internet connected devices will leap from 500M to 1 Trillion. Exabytes 1,800 1,600 1,400 1,200 1, x growth in five years RFID, Digital TV, MP3 players, Digital cameras, Camera phones, VoIP, Medical imaging, Laptops, smart meters, multi-player games, Satellite images, GPS, ATMs, Scanners, Sensors, Digital radio, DLP theaters, Telematics, Peer -to-peer, , Instant messaging, Videoconferencing, CAD/CAM, Toys, Industrial machines, Security systems, Appliances Approximately 70% of the digital universe is created by individuals, but enterprises are responsible for 85% of the security, privacy, reliability, and compliance.

24 We can address those challenges by building a Smarter Planet Leveraging the convergence of the physical and digital worlds Our world is becoming Instrumented By 2010, 30 billion RFID tags will be embedded into our world Our world is becoming Interconnected An estimated 2 billion people will be on the Web by and a trillion connected objects All things becoming Intelligent Every day, 15 petabytes of new information are being generated Indeed, almost anything any person, any object, any process or any service, for any organization, large or small can become digitally aware and networked

25 Managing the World s Infrastructure Infrastructure consists of both IT and operating assets, but they are becoming less differentiated Operating assets are becoming more co-mingled with, and dependent, on IT assets Companies are making more use of IT in running and maintaining assets Transportation Assets Facilities Production Equipment IT Hardware & Software Telco Managing more complex assets through the entire lifecycle presents new challenges and creates new opportunity.

26 What s intelligent about infrastructure? Centerpoint uses Smart Meters to reduce power consumption through demand response. A bridge has built-in sensors to monitor stress and indicate potential failure. Locomotives built by Bombardier have on-board computer systems using telematics for real-time diagnostics. A datacenter reduces energy consumption and optimizes service delivery by collecting power, thermal and temperature inputs from IT equipment, datacenter infrastructure and facilities. Smart buildings use building automation systems to optimize comfort, safety and energy consumption.

27 IBM is working with clients today on Smarter Healthcare Smarter Planet initiatives Public Safety Cardinal Health reduces diversion of controlled substances from the U.S. supply chain NYPD Real Time Crime Center provides access to 120M+ criminal complaints, arrests and 911 records Metropolitan Transportation Stockholm lowers traffic by 20%,emissions by 40% Government Services Alameda County improves delivery of social services while saving $24.7M annually 450+ Smarter Planet References

28 What Does It Mean to Be Smarter? New Data Sensors and Metering Data collection New Insights Event Processing + Real Time Data Integration Real Time + Historical Data Data Modeling & Analytics Data Integration Comparison of historical data, with newly collected data Data modeling and analytics to create insights from data to feed decision support and actions Process Innovation Visualization & Collaborative Decision Making New and Optimized Business Processes Leading businesses today are benefiting from new sensor data when combined with IBM s business process management, event processing and business optimization capabilities

29 IBM Software Solutions Group Our Mission To define and develop a new category of solutions software, leveraging IBM s Middleware portfolio, to deliver an industry-oriented value proposition to line-of-business users Industry Solutions Software Solutions IBM Industry Products Smarter Commerce Selling & Fulfillment Commerce Enterprise Market Management Enterprise Content Management Collaboration Portal Business Analytics Software and Systems CLARITY SYSTEMS Software Middleware Systems Technology

30 IBM Software is evolving our delivery model to provide bigger puzzle pieces for client solutions with emphasis on line of business value IBM Software Technology Repeated patterns are integrated into new products IBM Software Industry Solutions are unique, integrated Products, addressing industry use cases and solving specific customer problems delivered through Industry Frameworks for go-to-market context built on a common Platform of core IBM Software products for efficient delivery and reuse across industries...leverage both organic and inorganic investments...use client value delivery models, including cloud offerings Consumable, Repeatable, Scalable Offerings with increased Asset Content

31 Industry frameworks deliver technology in an industry context, driving smarter outcomes Travel and Transportation Increase revenue per seat or hotel room through reservation system modernization Insurance Banking Financial Markets Retail Energy and Utilities Government Network Centric Operations Service Provider Delivery Environment Media Enterprise Health Integration Integrated Information Product and Service Increased insurance underwriter productivity Renovate lending, mortgage, deposit and other core processing systems Integrate support for front-, middle-, and back-office processes Increase accuracy of promotions by targeting offers to the right customers Accelerate deployment of smart grids Avoid social service overpayments through a single view of the citizen Enables all service branches to share common applications Integrate new services with fulfillment, assurance, billing and care systems Improve management and distribution of digital assets Track assets, patients and staff to improve quality of care, and operations Reduce exploration risk and cost faster time-to-oil Reduce inventory, improve availability and delivery capacity

32 Leveraging capabilities from across IBM to build solutions Strategic Business Drivers Industry specific challenges, market drivers, shifts and trends (IBM Institute for Business Value, GBS, S&D) Industry Solutions Industry and subject matter expertise Applications and tools (GBS, GTS, IBM Research) Industry Frameworks Solution platform specifically configured with IBM software, industry assets and best practices to address an industries unique challenges (SWG, IBM Research) Servers, storage, communication networks and associated services Workload optimized systems (STG, GTS, IBM Research)

33 Software Strategy & 2015 Roadmap Agenda Quick overview of the key brand capabilities Lotus Information Management WebSphere Tivoli Rational Putting it all together to address our clients' needs Industry Solutions Cloud Computing Smarter Planet Q&A

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