Cloud without compromise: continuous innovation for growth

Cloud without compromise: continuous innovation for growth Jim Comfort General Manager, IBM Cloud Services Lance Crosby CEO, SoftLayer, an IBM Company October 8, 2013

What is driving IT demand in today s organizations? Advanced predictive analytics Explosion of mobile devices Cyber security Business Optimization and Big Data Real-time sensor data Infrastructure optimization, i.e. cloud computing Growth of social media 1

Transforming business outcomes requires a new type of system. Systems of Record Secure Data Dynamic Infrastructure On-demand Self-service Drives Need Drives Investment Systems of Engagement Knowledge Sharing Engagement Models Anywhere, Anytime Optimize IT infrastructure, data and processes Innovate how individuals engage, make decisions and work 2

IBM has an unique and comprehensive set of cloud capabilities IBM Cloud IBM s end-to-end cloud portfolio Think It. Strategize how to use cloud to drive savings and revenue growth. Build It. Build and run your private or hybrid cloud. Tap into It. Utilize cloud services delivered from IBM s SmartCloud Restless reinvention Analytics everywhere A dynamic hybrid cloud strategy 3

IBM cloud. Think it. Build it. Tap into it. Enabling business transformation Smarter Commerce Business Process as a Service Business Process Solutions Application Application Application Application Application Smarter Analytics Smarter Cities Marketplace of high value consumable business applications Smarter Workforce Software as a Service External Ecosystem Industry Collaboration Human Resources Big Data & Analytics Commerce Marketing Watson solutions Software solutions Platform as a Service Composable and integrated application development platform Built using open standards Development Big Data & Analytics Security Integration Mobile Social Traditional Workloads Middleware solutions Infrastructure as a Service Enterprise class, optimized infrastructure Built using open standards Compute Storage Networking Public. Private. Dynamic Hybrid. SOFTLAYER IBM SmartCloud Enterprise + Infrastructure solutions 4

SoftLayer provides access to unique capabilities and new markets. Infrastructure as a Service Enterprise class, optimized infrastructure Built using open standards Compute Storage Networking Performance Web Mobile API Common user interface and application programming interface Gaming and entertainment Flexibility Bare Metal Servers Virtual Server Instances Private Clouds Marketing and digital media Automation Triple Network Architecture seamless communication across distributed environments Infrastructure Management System provides orchestration and automation Enterprise 5

IBM Cloud Managed Services delivers the flexible, scalable and resilient infrastructure services essential to enterprises of all sizes. Resilient, managed infrastructure to support production-grade managed applications. Essential managed services choose as many or as few as you need SAP Applications Oracle Applications SAP HANA Infrastructure as a Service Enterprise class, optimized infrastructure Built using open standards Compute Storage Networking SOFTLAYER IBM SmartCloud Enterprise + Infrastructure solutions 6

PaaS enables rapid service composition of new cloud applications that deliver unique business value. Composition environment for new systems of engagement cloud apps API management for public and private services Open service ecosystem and marketplace Connects to systems of record Business Logic Integration SDKs Data Analytics Platform-as-a-Service API Marketplace Security API Management 7

IBM PaaS: accelerate developer productivity for specialized domains via an assembly-with-clicks paradigm and minimal coding. Learn more at www.ibm.com/bluemix New things customers can do on SoftLayer Application Patterns - Easily deploy application patterns, while streamlining DevOps for agile development JazzHub - Collaboratively develop and manage the lifecycle of mobile and cloud applications natively UrbanCode - Rapidly deliver software development, test and production (DevOps) Platform as a Service Composable and integrated application development platform Built using open standards Development Big Data & Analytics Security Integration Mobile Social Traditional Workloads 8

SaaS and BPaaS directly serve the needs of the business leader and functional departments. Chief Human Resource Officers need to find, analyze, source, acquire and retain the best talent worldwide Heads of Customer Care need to build unique service and retention techniques via personalized engagements VPs of Sales must drive omnichannel B2C sales that integrate across mobile, social, and on-site locations Chief Procurement Officers need to strategically manage spend, contracts and supplier ecosystems Chief Marketing Officers must analyze, understand and engage each customer as an individual across channels General Counsel needs to streamline contract management processes, and strengthen IP Chief Financial Officers need to make more analytical, riskaware decisions supporting revenue, expenses, and other KPIs 10

High value applications: delivered at scale and helping our clients transform their businesses today. 300,000 global trading entities connected for IBM clients x 120 million candidate records on the Kenexa talent management platform 5.5 million daily transactions exchanged via IBM B2B cloud accessed daily by 80,000 candidates and more than one million hiring managers 60,000 users of IBM digital marketing tools send 130 million monthly emails e 180 Million transportation management transactions annually 11

As more organizations adopt an open cloud architecture, the architecture becomes more defined and robust. External ecosystem Marketplace API API API analytics API App commerce API collaboration location API API Solutions data API services Software as a Service API economy Services and composition patterns API and integration services data store mobile middleware services security ops dev Traditional workloads Platform as a Service Cloud operating environment Workload definition, optimization and orchestration Resource abstraction and optimization Software-defined compute Software-defined storage Software-defined networking Infrastructure as a Service Software defined Plus hardware 12

Business transformation takes place when cloud is used as the foundation for enhanced mobile, social and analytics capabilities. Clients are acting now: Speed IBM is responding: Empowerment Economics Think it Build it Tap into it IBM experts strategize how to use cloud to drive not just savings, but revenue and growth IBM SmartCloud: Designed for big data IBM Cloud technologies and services are designed to build and run private or hybrid cloud and new cloud apps that foster deeper insights and analytics Defined by software IBM SmartCloud quickly taps into analytics and SaaS business applications and runs business in the cloud Open and collaborative 13

SoftLayer

Global Cloud Leader Formed by ten industry veterans in 2005 Model predicated on software-driven infrastructure Unencumbered by early-industry legacy restrictions Founding principles Innovation, Empowerment, Automation, Integration Acquired by IBM in July 2013 15

A working definition Cloud (n) On-demand compute with consumptive billing On-demand Rapidly provisioned services Compute Servers, network, storage, firewalls, ancillary services Consumptive billing Turns traditional fixed IT costs into variable monthly or hourly Initial model virtualized multi-tenancy computing does not meet requirements for 100% of applications and use cases For broadest applicability, user-selectable levels of performance, security and isolation are required 16

Cloud helps match business needs & IT resources

Global Cloud Platform Unified architecture enabled by powerful software Only infrastructure solution with a common management interface and API across a unified architecture Customers mix and match bare metal servers, virtual server instances and turnkey private clouds and manage them from a single control pane or API All deployed on-demand and provisioned automatically in real-time 18

Global footprint 13 data centers 17 network PoPs 100,000 devices 22,000,000 domains 21,000 customers 19

Unparalleled Flexibility & Power One platform, myriad solutions to serve a broad range of customer requirements for performance, isolation Highly flexible architecture One integrated platform for public cloud servers, private clouds, bare Hybrid Clouds metal servers Private Clouds Unified systems management & API Technology-neutral platform Support for broad range of operating systems, virtualization platforms Server Build hybrid, distributed, highperformance architectures and manage from a single pane of glass? Bare Metal Virtual Servers Pay by the hour or the month for a truly variable IT operations model 20 Public Clouds

Triple-network architecture High-performance public network with transit from multiple tier-1 carriers Secure OOB management via VPN Private network for intra-application and inter-facility communications, access to shared services Native IPv6 support Virtual racks for integrated management Complete suite of network services 21

How It All Fits Together SoftLayer Infrastructure Management System Bare metal & virtual server provisioning Integrated BSS/OSS Comprehensive network management Data Center & Pods Standardized, modular hardware configs Lower inventory carrying costs Maximize asset utilization & profitability Increase provisioning flexibility Simplify capacity management Globally consistent service portfolio Triple Network Proprietary network architecture Pod design allows customers grow to across multiple racks or rows in the same layer 2/3 domain as needed. 22

Robust, full-featured API Improves customer control, reduces error, increases flexibility SoftLayer API provides 1,600 function calls to over 200 services Supports REST, SOAP & XML-RPC interfaces Enables full auto-scaling implementations Comprehensive documentation, libraries and support Functions include: Automatic server deployment Service provisioning Reboots & reloads Ticketing Hardware configuration Software load DNS Network Storage Security scans Monitoring 23

Service portfolio 24

21,000 leading-edge customers Software as a Service Mobile & Communications Bump Voxer Instapaper Yelp Social Games and Entertainment Platform as a Service Marketing and Digital Media Hosting & Service Providers Enterprise 25

A comprehensive view

How to move strategically. 1. Restless reinvention: Keep in mind it is not about the technology alone; it is about a company culture ready to innovate with cloud 2. Analytics everywhere: Ensure your cloud strategy is also the ultimate analytics strategy 3. A dynamic hybrid cloud strategy: Strategically mix clouds to deliver the business outcome 28

Legal disclaimer IBM Corporation 2013. All rights reserved. IBM, the IBM logo, ibm.com and IBM SmartCloud are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. SoftLayer is a trademark of SoftLayer Technologies, Inc., an IBM company. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the web at Copyright and trademark information at www.ibm.com/legal/copytrade.shtml. Other company, product, or service names may be trademarks or service marks of others. The information contained in this publication is provided for informational purposes only. While efforts were made to verify the completeness and accuracy of the information contained in this publication, it is provided AS IS without warranty of any kind, express or implied. In addition, this information is based on IBM s current product plans and strategy, which are subject to change by IBM without notice. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, this publication or any other materials. Nothing contained in this publication is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software. References in this presentation to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in this presentation may change at any time at IBM s sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. Nothing contained in these materials is intended to, nor shall have the effect of, stating or implying that any activities undertaken by you will result in any specific sales, revenue growth or other results. Performance is based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput or performance that any user will experience will vary depending upon many factors, including considerations such as the amount of multiprogramming in the user's job stream, the I/O configuration, the storage configuration, and the workload processed. Therefore, no assurance can be given that an individual user will achieve results similar to those stated here. All customer examples described are presented as illustrations of how those customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics may vary by customer. 30

Driving business transformation

Cloud in action: Drivewyze Eliminates costly IT infrastructure with an IBM SmartCloud solution The need: Drivewyze needed a costeffective, managed infrastructure that could scale to meet a rapid increase in customer demand. The solution: The IBM SmartCloud Enterprise+ solution provides a flexible, fully managed environment that reduces administrative workload and enables IT resources to focus on core applications. Choosing to partner with IBM was a fairly easy decision and the advantages of leveraging IBM resources to help manage our infrastructure was a big deciding factor. Brian Mofford, vice president, Drivewyze Benefits: Increases customer satisfaction with near-real-time scaling to more swiftly meet growth-inmarket demand Reins in IT costs with a fully managed model that eliminates the need to acquire up to six IT resources for support Capitalizes on a security-rich, highly available IBM architecture that establishes credibility with risk-averse customers 32

Cloud in action: TP Vision Reducing costs by 40 percent with an IBM SmartCloud solution The need: As TP Vision grew, it was challenged to scale its traditional hardware infrastructure to meet customer demands efficiently and cost effectively. The solution: TP Vision moved its Smart TV solution s development, testing and hosting operations from a traditional hardware architecture to an IBM SmartCloud Enterprise+ environment. TP Vision was looking for a solution that would allow us to support growing customer demand, and IBM was the partner to do that with. The IBM SmartCloud infrastructure fits perfectly with our vision. Remco Meeuwesen, director operations, Smart TV Benefits: Reduces operating costs with a usage-based pricing model, translating into around a 40% decrease in cost per TV Increases customer satisfaction with near real time scaling to meet demand as well as cyclical and unplanned spikes in usage Eliminates the need to acquire and set up hardware, reducing provisioning time from up to two months to minutes 33

Back up

As cloud becomes the go-to delivery method for organizations, it has also become a growth engine for business. 2X more companies will use the cloud for significant innovations by 2015. 1 2.4X Higher gross profit for enterprises that are more aggressively adopting cloud computing for competitive advantage. 2 * Cloud is inspiring leaders to change the way they approach their organizations and to transform and innovate the way business works. 1 IBM, The power of cloud: Driving business model innovation, February 2012. 2 IBM Center for Applied Insights, Global Cloud Enterprise Study, 2013. 35

IBM cloud is your growth engine for a Smarter Enterprise. IBM Cloud IBM s end-to-end cloud portfolio Think It. 37,000 experts with deep industry knowledge $6+ billion in cloudrelated acquisitions since 2007 80% of Fortune 100 companies use IBM cloud capabilities Build It. #1 in EMA Radar for private cloud platforms #1 in annual world-wide server revenue OpenStack founder 50% reduction in IBM s IT labor cost with Dev/ Test Cloud Tap into It. More than 21,000 SoftLayer clients in 140 countries SoftLayer is up to 10X faster than other cloud providers More than 100 cloud SaaS solutions 36

IBM PaaS: accelerate developer productivity for specialized domains via an assembly-with-clicks paradigm and minimal coding. IBM PaaS Platform Increased business agility and speed Reduced cost of application development Based on open standards Integrated DevOps 37

Bringing together IBM s capabilities with Business Partners, ISVs and open source provides a rich ecosystem for application development. IBM capabilities Business Partners Open source ISVs Built on OPEN Cloud Foundry standards 38

Delivering the most flexible cloud solutions for building, integrating and securing cloud applications. New things customers can do on SoftLayer Application Patterns - Easily deploy application patterns, while streamlining DevOps for agile development JazzHub - Collaboratively develop and manage the lifecycle of mobile and cloud applications natively UrbanCode - Rapidly deliver software development, test and production (DevOps) On premise Mobile Cloud New rapid, on-premise PaaS deployments PureApp System Power- Low-cost entry point for ready-to-go private cloud for GMU and departmental deployments Power Systems Solution Edition for Service Providers - Rapid GTM, pre-configured cloud solution with OpenStack support Platform as a Service Composable and integrated application development platform Built using open standards Development Big Data & Analytics Security Integration Mobile Social Traditional Workloads 39

New cloud services that empower the individual with analytics and mobility. Social Learning platform Kenexa Mobile Feedback App Kenexa Survey Analytics Xtify Mobile Customer Engagement Watson Engagement Advisor Social Media Analytics Cognos TM1 (SaaS version on SoftLayer) SmartCloud for Social Business Marketplace of high value consumable business applications Software as a Service External Ecosystem Industry Collaboration Human Resources Big Data & Analytics Commerce Marketing 40