Select Acquisitions By Buyers Across Various Themes

Transcription

1 Select Acquisitions By Buyers Across Various Themes Data Center Convergence SaaS / Cloud Big Data / Analytics Next Generation Security Cloud / IT Management Mobility Cloud / SaaS Storage NPM / APM Social Local Vertical Commerce / Media Digital Marketing /

2 Layers of Convergence and Impacts on the Technology Stack Convergence trends are occuring at specific points within the layers of the stack and within the white spaces between these layers Analytics Description: Unlock value of data residing in transactional ERP and content management systems Drivers: revenue and support costs from data insights Control points: Data management, unstructured data analytics (Big Data platforms), next-gen BI platforms Examples: SAP/Business Objects, IBM/Cognos, Oracle/Hyperion Analytics / Infrastructure SW Description: Support next-gen business apps on flexible platform Drivers: Cost and complexity of deploying new apps Control points: PaaS platforms and middleware that spans highly distributed cloud environments Examples: AWS, Google AppEngine, IBM/Cast Iron Infrastructure Software Description: Holistic IT management solution spanning systems, network, storage, security with single console Drivers: Virtualization complexity, compliance, agility Control points: SIEM platforms, cloud provisioning/monitoring solutions Examples: HP/Arcsight, EMC/RSA, Symantec/Veritas Systems, Storage, and Security Middleware/ App Dev Ecosystems Infrastructure Software Analytics Business Intelligence, Data Warehousing, And Vertical Analytics IT Management Purpose-built Appliances Compute, Networking, and Storage Data Center Hardware Analytics / Hardware Description: Purpose-built hardware designed to run specific applications or analytics Drivers: Performance (for data warehousing, etc), configuration and implementation costs Control points: Data warehousing, SIEM appliances Examples: SAP/Sybase, Oracle Exadata Data Center Hardware Description: Compute, networking, and storage functionality in unified form factor Drivers: Lower costs ( component, energy costs, staff), agility Control points: Unified form factors Examples: Cisco UCS, Dell/Force10, HP POD, FlexPod, IBM Pure Systems Infrastructure SW / HW Description: Converged hardware still requires software management layer to optimize benefits Drivers: Performance (for specific high-throughput function), complexity and cost Control points: Embedded IT management software Examples: Oracle/Sun, security appliances

3 Cost Drivers and Implications of Convergence of the IT Stack Drivers of Convergence Lower total cost of ownership than best-of-breed solutions Economics all else equal, stack providers can offer a solution that integrates multiple components at a lower overall TCO (deployment, integration and maintenance) Improved performance, agility and ease-of-use Vendors will engineer hardware and software up and down the stack to optimize for performance Reduces operational complexity Desire to purchase from fewer IT vendors Potentially reduces troubleshooting time and costs Easier purchasing decision less risk with buying from IBM Standards are evolving deploy de facto standards Real World Examples Ex 1: TCO Analysis of Cisco s UCS vs. Best-of-Breed Solutions Best-of-Breed 49% Cost Savings Solution Cost (8%) Deployment & Integration 12% Upgrades & Hidden Costs 27% Other Costs 18% Total Savings 49% Implications Integrated, purpose-built appliances, will garner significant interest across the Enterprise IT buying ecosystem Converged stack purchasing by IT will become bifurcated over time Large enterprises will continue to cherry-pick components based on functionality, need and price Mid-tier enterprises will be most aggressive in purchasing stack solutions As the converged stack paradigm gains acceptance, stand-alone HW and SW vendors will face increasing competition from cloud providers and their outsourced super stack Best-of-breed vendors will remain competitive but need to be laser focused on reinforcing their market position and customers Ex 2: Cost Comparison b/w Traditional Data WH and an Appliance Traditional 60 TB Data Warehouse 3 Yr. TCO: $5,005,200 41% Cost Savings 60 TB Data Appliance 3 Yr. TCO: $2,964,000

4 Hardware Software IT Infrastructure Landscape: Converged Solutions are a Key Driver of Competitive Differentiation Applications Middleware Database OS/Hypervisor Systems Mgmt. Storage Mgmt. Security Mgmt. Server Storage Network Services HP, IBM, Dell, EMC / VMware and Oracle represent credible convergence contenders Note: Based on market capitalization greater than $10BN

5 Mobile Opportunity / Setting the Stage The mobile explosion is upon us both Consumer and Enterprise Growth in mobility accelerating, driven by increased user adoption of Smartphones / Tablets and the insatiable demand for anywhere, real-time connectivity and content 300M Data Capping Smartphones 3 Exabytes Mobile Traffic Annually 23% Mobile Devices are 3G/4G 87% Wireless Penetration 27% Mobile Devices are 3G/4G 70MM Tablet Sales Annually 5.4BN Mobile Users 7.6B Mobile Users 75+ Exabytes Mobile Traffic Annually 80% Mobile Devices are 3G/4G Mobile Data Traffic to Grow 100x 2.5BN Smartphones 6.1BN 3G/4G Subscribers 99% Wireless Penetration 500MM Tablet Sales 2010 Today 2020

6 Global Mobility TAM Applications 2012 Market Size: $20.0BN Platform (O / S, Middleware) 2011 Market Size: $1.2BN Devices 2011 Market Size: $185.6BN Mobile Infrastructure 2010 Market Size: $42.6BN Semiconductors 2011 Market Size: $27.7BN