Driving competitive advantage in the era of Smart

(1)

Driving competitive advantage

in the era of Smart

(2)

Reactive

security to

Rigid

infrastructure to

Structured

data to

Millions

of PCs to

billions

of mobile devices

massive amounts of

unstructured

data

intelligent,

proactive

protection

an

elastic

cloud infrastructure

Single

transactions to

personalized

engagement

Static

applications to

dynamic

services

On a Smarter Planet, everyone is connected

to everything. The result?

(3)

In this new era, four key shifts create complexity—and

competitive advantage

90%

1

billion

81%

employees, customers and partners will be using

smartphones and tablets by 2014.*

of the data in the world today has been created

in the last two years alone.

of customers depend on social sites for

advice on potential purchases.

54%

of executives believe cloud represents

enhanced revenue opportunities.

(4)

Protect the

brand and future

Use cloud to drive

strategic change

Engage customers, citizens and

employees as individuals

Speed delivery of new

products and services

Engage anyone,

anytime, anywhere

Capitalize on big data

to know and act

To differentiate themselves, leading organizations need to:

Smarter Cities Cloud Mobile Smarter Commerce Security Social Business Business Process and Integration DevOps and Product Development Big Data & Analytics Expert Integrated Systems

(5)

 Big Data  Business Analytics  Data Management  Data Warehousing  Information Integration and Governance

Need

Capabilities

Need

Capabilities

 Commerce

 Enterprise Content Management  Enterprise Marketing Management  Procurement

 Smarter City Operations  Social Collaboration

 Talent and Workforce Management  Unified Communications

 Web Experience

 Application Infrastructure  Business Process Management  Connectivity, Integration and

Service-Oriented Architecture  Application Lifecycle Management  Product and Systems Development  Enterprise Modernization

 Expert Integrated Systems

 Asset and Facilities Management  Cloud and IT Optimization

 Enterprise Endpoint Management

 Application Security  Data Protection  Mobile Development and Connectivity

 Mobile Insights and Analytics

IBM has a rich portfolio of capabilities to help achieve these

business goals

Capitalize on big

data to know and

act

Engage

customers,

citizens and

employees as

individuals

Speed delivery

of new products and

services

Use cloud to

drive strategic

change

Protect the

brand and future

Engage anyone,

anytime, anywhere

(6)

IBM capabilities help deliver measurable outcomes for clients

35%

reduction in

26%

increase in

40%

increase in

60%

increase in virtual

22%

increase in revenue

6 years

of intrusion

Capitalize on big data to know and act

Engage customers, citizens and employees as

individuals

Speed delivery of new products

and services

Use cloud to drive strategic change

Protect the brand and future

Engage anyone, anytime, anywhere

machine capacity, lowing costs and accelerating business.

customer retention by identifying at-risk customers

through increased responsiveness to market opportunities

sales year over year and increased productivity

prevention achieved marketing costs and 3x

(7)

2 Differentiate using

key disruptive technologies:

Big Data & Analytics, Mobile,

Social and Cloud

Engage customers, citizens

and employees as

individuals

Speed delivery of new

products and services

Protect the brand

and future

1

3

4

(8)

82%

42%

Mobile device proliferation

73%

42%

Collaboration across the ecosystem

78%

40%

Explosion of unstructured data

82%

36%

Cloud platforms and solutions

Technology Trends Most

Impacting Competitiveness

Organizations Underprepared

for Technology Trends

Cloud

Mobile _Social

Business Big Data & Analytics

However, most clients tell us they are underprepared to apply

these key technologies

(9)

Attract, grow and

retain customers Transform financialprocesses to drive performance

Optimize operations, prevent threat and fraud

and monetize data

Gain IT efficiency and scale and

enrich your information base

The industry’s only purpose-built platform for big data,

combined with best in class analytic solutions with the

embedded expertise to deliver immediate business value at

the point of impact.

Capitalize on big data to know and act

Big Data & Analytics

Convert the world's new natural resource into value for your organization.

Make risk-aware decisions and

(10)

IBM delivers true market leadership in Big Data &

Analytics

3 years

Named the leader in Completeness in Vision

three years running in the Gartner Magic

Quadrant for BI & Analytics Platforms

2

28 of 30

Placed in 28 of 30 Gartner

Big Data categories

1

Named a Leader in Forrester Wave

report for Predictive Analytics Solutions

3

Working with 200+ schools globally on

big data & analytics skills education

200+

Forrester Wave

1. Hype Cycle for Big Data, July 2012 by Gartner

2. Garnter Magic Quadrant for BI & Analytics Platforms, 2011, 2012, 2013. 3. Forrester Wave: Big Data Predictive Analytics - Jan 2013

(11)

And we offer a rich spectrum of solutions through a broad

technology ecosystem

2013 Q1

2012 Q1

2012 Q3

Big Data Exploration

Sales Performance Management Analytic Decision Management Analytic Answers InfoSphere BigInsights & Streams Accelerators PureData System for Analytics & for Operational Analytics

Big Data Discovery

Social Media Analytics

9th_{Analytics Solution}

Center Opens in Ohio

PureData System for Hadoop DB2 with BLU Acceleration

(12)

Engage anyone, anytime, anywhere

Mobile

Transform strategy and operations by reimagining every interaction in a mobile first context

Optimize mobile experience and deepen engagement by delivering multi-platform mobile apps

Securely extend mobile to the enterprise with device, data, network and

application integration and management

IBM MobileFirst solutions help turn interactions into opportunities,

combining deep industry expertise with powerful analytics, cloud,

social, and security technologies.

(13)

IBM delivers competitive advantage in Mobile

1200+

enterprise clients use

IBM Mobile products,

services & solutions

50%

of Top Ten US

Insurance, 20% of the

largest US banks

125+

patents for wireless

inventions in 2012

6000+

mobile experts

deployed globally

in Mobile App Design and

Managed Services by Forrester

and Gartner

1

A Leader

Market leadership

(14)

March

Secure device management [IBM Endpoint Manager]

June

Mobile user experience instrumentation & analytics

Jan 2012

Cross-platform mobile app development without lock-in

Oct

User access protection from mobile devices

[IBM Security Access Manager for Cloud and Mobile]

Feb 2013

1. The Forrester Wave™: Enterprise Mobility Services, Q1 2013, Forrester Research, Inc., February 15, 2013. Magic Quadrant for Global Digital Marketing Agencies, October 2012 by Gartner

Software testing and service virtualization

And we offer a rich ecosystem to meet your needs

(15)

Create a smarter workforce Deliver an exceptional

customer experience Integrate social into yourbusiness processes

Engage customers, citizens and employees as individuals

Social Business

Empower your workforce and deliver a more compelling customer experience.

The only enterprise social platform to combine social networking,

analytics, content management and integration capabilities.

(16)

Market leadership

8 of 10

of the top banks and

retailers boast exceptional

web experiences

#1 Market Share

SaaS

39,000+

partners in IBM’s

social business

ecosystem

for Enterprise Social Software 2009-2012

Forester named IBM a leader in

cloud based collaboration

solutions and strategies

50,000+

clients including

more than 60% of

the Fortune 100

(17)

Enriched capabilities

IBM Connections v4.0

September

_December

May 2012

v8.0 announced

January 2013

IBM SmartCloud Docs

November

March

IBM Notes and Domino Social Edition v9.0

IBM

Connections v4.5

IBM Social Media Publisher v1.0

announced

IBM Social Media Analytics Solution

(18)

Use cloud to drive strategic change

Cloud

Rethink IT. Reinvent business.

Reduce IT complexity and

cost Scale virtual resources toaccommodate growth Deliver cloud-based servicesto meet customer demand Free resources to focus oninnovation

An open platform with a full range of security-rich,

enterprise-class cloud services, featuring advanced cloud management and

integrated security.

(19)

Deploy Design

Business Process as a Service Software as a Service Platform as a Service Infrastructure as a Service Consume

60+

SaaS offerings

5000+

new private cloud

clients in 2012

190+

optimized solutions

from 170 IBM

Business Partners

1700+

MSPs joined as IBM

Business Partners in 2012

45+

commits to OpenStack

by 600+ contributors

Market leadership

(20)

Enriched capabilities

Storage planning software & storage migration tools Interoperable cloud ecosystem & standards Lifecycle collaboration & management [SmartCloud Continuous Delivery] Cloud infrastructure & platform [SmartCloud Foundation] Cloud-ready, workload optimized systems [IBM PureSystems] Software testing & service virtualization

Jan

Feb

April

June

Sept

(21)

Customers

Citizens

49%

of U.S. households

received some type of

government benefit in

2011

Create exceptional experiences for customers and citizens

86%

of leading organizations

say customer experience

is their top priority.

(22)

Smarter Commerce enables businesses/organizations to deliver

exactly the right experience at exactly the right moment –

resulting in delighted customers and the profits to match.

Engage customers, citizens and employees as individuals

Smarter Commerce

Your customer in context.

Drive adaptive procurement and

optimized supply chain

Enable targeted and personalized marketing across all channels

Deliver seamless cross-channel customer experiences

Anticipate behavior and provide flawless

(23)

50+

SaaS offerings

5.5M

daily transactions

exchanged via IBM

B2B cloud

60,000+

users of IBM digital

marketing tools send

130M+ emails per month

2000

dedicated consultants

across the globe

30,000+

global trading entities

connected for IBM

clients

Market leadership

Business Analytics

Core Business Solutions and Processes Smarter Commerce Services

MARKET SELL SERVICE BUY

IBM SmartCloud Solutions, Computing & Infrastructure

(24)

Enriched capabilities

(25)

Leverage information to

make better decisions Anticipate problems toresolve them proactively Coordinate resources andprocesses to operate effectively

Smarter Cities

Innovate to meet citizens’ growing demand for services.

City leaders are embracing new ideas and solutions to turn vast

amounts of data into insight—to deliver sustainable economic

growth and enhanced quality of life for citizens.

(26)

Market leadership

_{Market leadership}

• Thousands of implementations

• Unparalleled strength

• City-specific solutions

• Range of deployment choices

• 1000+ people working to help cities

(27)

Market leadership

_{Enriched capabilities}

Enriched capabilities

Intelligent Operations Center – first

city-specific solution Intelligent Intelligent Video Analytics, Intelligent City Planning and Operations

April 2011

June

Dec 2011

Oct

2012

2013

(28)

The demand for innovation vs. the realities of IT

1

in

5

organizations allocate more than 50 percent of their IT budgets to new products

Only

44%

of companies require up to three months to make a single-line software code change

99%

of CIOs with mandates to transform the business are looking to drive better

processes*

(29)

The IBM PureSystems family is a set of expert integrated systems that are

built for cloud, big data & analytics. They simplify the entire IT lifecycle

to reduce time, cost and risk and help rapidly meet new demands like

mobile and social.

Speed delivery of new products and services

Expert Integrated Systems

Expertise: Pure and Simple.

(30)

Market leadership

• 4,000+ systems sold in 90+ countries

• 200+ client and business partner references

• 380+ customized software patterns from 275+ ISVs

IBM delivers competitive advantage in Expert

Integrated Systems

“Having the complete system that manages the load for you,

that comes ready to run out of the box, that has software,

self-managing, that is the future of IT.”

(31)

Enriched capabilities

System for Hadoop

April 2012

Oct 2012

April 2013

And we offer a rich ecosystem to meet your needs

System for Transaction System for Operational Analytics

System for Analytics

Simplifying cloud, big data & analytics

(32)

Business Integration

Require a flexible and secure integration model

Launch an end-to-end mobile strategy where you prioritize

continuous

development, know your users and receive continuous feedback Amplify innovation by embracing partnerships with other organizations,

business partners and communities

Drive customer-centricity into day- to-day business

operations where processes are instant, insightful and

seamless

Capture insights from interactions and instrumented endpoints across channels and

transform them into business opportunities

Apply continuous insights within and across business processes and applications

Derive and deliver value through internal and external

interaction, with a business and IT design that integrates

back-office systems to front office engagements.

(33)

Market leadership

More than 20,000 Application

Infrastructure and 10,000 Connectivity

and Integration customers with 1,600+

WebSphere Core authorized resellers

90% of the 100 largest corporations use

WebSphere Application Server

#1 share position in the Application

Infrastructure and Middleware market

category as defined by Gartner

#1 Market share in Message Oriented

Middleware, B2B Middleware,

Appliances, and TPM

IBM delivers competitive advantage in Business

Integration

(34)

Enriched capabilities

IBM acquires Sterling Commerce IBM launches lightweight application server IBM launches high volume mobile & M2M messaging appliance. IBM launches a solution

for creating, proxying, assembling, securing, and scaling web APIs.

May 2010

April 2012

_{April 2013}

(35)

IBM offers the industry’s most comprehensive business

process platform, integrated with mobile and big data

capabilities, delivered through deep industry expertise and

managed services.

Business Process

Reinventing business operations

Simplify business

operations to build

customer engagement

Increase

straight-through processes to

improve the customer

Acquire and retain

customers through

operational excellence

(36)

Market leadership

5000+ active implemented customers

and 800+ business partners

#1 market share in Business Process

Management and Business Rule

Management Systems according to Gartner,

Forrester and IDC

650+ experts by June 2013 at the Global

Smarter Process center of competence (CoC)

Leader in Gartner’s Magic Quadrant for

Intelligent Business Process Management

Suites and Forrester Waves for BPM Suites

and Dynamic Case Management

IBM delivers competitive advantage in Business

Processes

(37)

Enriched capabilities

Integration of Lombardi and WebSphere Process Server

into IBM BPM

IBM named leader in Gartner’s new Magic Quadrant, Intelligent Business Process Management

Suites (iBPMS)

SWG and GBS

Announcement of IBM Smarter Process, a cross-IBM initiative across SWG, GBS and GTS

May 2011

Oct 2012

March 2011

April 2013

(38)

IBM DevOps leverages an open standards-based platform,

continuous feedback loop, comprehensive delivery analytics

and is designed to integrate into existing environments.

DevOps

Seize market opportunities and reduce time to customer feedback.

Obtain fast-mover advantage with quicker time to value of

software-based innovation

Increase capacity to innovate by reducing waste and rework in software delivery

Deliver a better customer experience by

implementing a

continuous feedback loop

Anticipate behavior and improve quality,

predictability and service level

performance with better lifecycle visibility

(39)

Market leadership

Highest scores among all reviewed

vendors by Forrester for “strategy” in

application life cycle management tools as

well as ALM “current offerings.”

DevOps Lifecycle

Operations/ Production Development/Test

Customers Business_Owners

Named the #1 vendor in Application

Development software by Gartner

for the 12th consecutive year

#1 in Evans Data Corporation User's

Choice Survey for Software

Development Platforms, for the 6th

time in 7 years.

(40)

Market leadership

Enriched capabilities

Cross-platform mobile app development without lock-in Customer Behavior Analysis Systems and embedded software delivery Software quality and test virtualization solutions SmartCloud Continuous Delivery for lifecycle

collaboration and management

April 2008

Jan 2012

June 2012

Oct 2012

(41)

Provides a complete, collaborative systems and software

engineering solution to help deliver high quality products

and systems, on time and with reduced risk.

Product Development

Design products and systems that are innovative, yet safe, secure and reliable

Improve product quality and demonstrate

compliance to regulations

Accelerate the design, development and delivery of complete families of products

Visualize, organize and analyze your

engineering data to accelerate innovation

(42)

Magic Quadrant for Global Digital Marketing Agencies, October 2012 by Gartner

Market leadership

All Top 10 WW Industrial

and Communications

Companies use Rational



Enterprise Tools



Requirements Definition Management



Analysis, Design and Construction



Change and Configuration Management



Project and Portfolio Management



Quality Management

IBM delivers competitive advantage in Product

Development

(43)

Enriched capabilities

IBM Rational Engineering Lifecycle Manager (RELM) IBM DOORS Next Generation IBM Rational Team

Concert IBM Rational Design Manager

IBM Systems and Software Engineering Solution (SSE) Industry Accelerators and Solution Product Line Engineering Solutions Smarter Lifecycle Asset Management Smarter Physical Infrastructure Smarter Products and Services

(44)

Protecting the brand involves the front and back office

50%

Of all companies that allow “bring your own device” (BYOD) have experienced a data breach.**

* Forrester, Great mobile experiences are built on systems of engagement, Ted Schadler and John McCarthy, November 16, 2012. ** Decisive Analytics, Mobile Consumerization Trends & Perceptions IT Executive and CEO Survey, August 2012.

*** IBM, The business of social business, November, 2012.

Nearly

The average cost of a data breach for U.S.-based companies is US$5.5 million.

$5.5

(45)

Safeguard the network and its servers and endpoints from a wide range of evolving threats

Secure web and mobile applications throughout their lifecycles

Manage user identities and access privileges throughout their lifecycle to protect data, web sites and

1

Gain real-time insight into threats and compliance risks through advanced

intelligence Manage user identities and

access privileges throughout their lifecycles

Protect the brand and future

Security

Security intelligence. Think integrated.

A comprehensive, cost-effective framework delivering

integrated capabilities that use intelligence to enable a

stronger enterprise security posture.

(46)

10 Leader in virtually all of

the markets we target,

according to Gartner, IDC

and Forrester

IBM

X-Force

®

Award-winning security

research

64,000

One of the industry’s largest

vulnerability databases

Double digit

growth

year-to-year of Security Systems

Deployment Accredited Business Partners

Market leadership

(47)

Enriched capabilities

Controlling privileged user access [IBM Security Privileged Identity Manager] NextGen network security [IBM Security Network Protection] Enhanced identity management [IBM Security Identity

Manager Role and Policy Management] Integration across domains [IBM Security QRadar, IBM Security Network IPS] Formed IBM Security Systems division acquired

Big data security analytics [Security Intelligence with Big Data] iOS Mobile Application Security [IBM Security AppScan]

Jan 2012

March

May

Aug

Oct

Jan 2013

Mar

(48)

IBM Software brings the experience of

thousands of engagements plus

IBM

systems, technology services, business

services, business partners and

(49)

Supply chain CSCO

Industries

Finance CFO Human resources CHRO Marketing CMO Executive CEO

Functions/roles

IT CIO Engage customers, Capitalize on big data Speed delivery of new products and

Use cloud to

drive Protect the_{brand and future} Engage anyone,

anytime, anywhere

Business and IT needs

Banking Energy Government Healthcare Education Transportation Retail

Communi-cations

A transformed software portfolio

(50)

Protect the

brand and future

Use cloud to drive

strategic change

Smarter Cities Cloud Mobile Smarter Commerce Security Social Business Business Process and Integration DevOps and Product Development

Engage customers, citizens and

employees as individuals

Speed delivery of new

products and services

Engage anyone,

anytime, anywhere

Big Data & Analytics

Capitalize on big data

to know and act

Expert Integrated Systems

(51)

IBM Corporation 2013

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