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© 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John Sing, STG, Business Continuity Strategy

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Page 1: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

© 2008 IBM Corporation

Dynamic InfrastructureManaging risk with IBM

- The Resilient Enterprise

Pat Corcoran, IGS BCRS Global Solutions ExecutiveJohn Sing, STG, Business Continuity Strategy

Page 2: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

2 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

2 © 2009 IBM Corporation

Agenda

Changing market forces – smarter planet A dynamic infrastructure A dynamic infrastructure helps you mitigate risk Why improve resilience How to identify the right resilience strategy The IBM Resilience Blueprint IBMs Global Delivery Method IBM smart client examples Getting started on resilience improvement How IBM can help IBM’s resilience portfolio overview Next steps

Page 3: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

3 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

3 © 2009 IBM Corporation

Something meaningful is happening…The world is about to get a whole lot smarter.

“Every human being, company, organization, city, nation, natural system and man-made system is becoming

interconnected, instrumented and intelligent. This is leading to new savings and efficiency—but perhaps

as important, new possibilities for progress.”

Page 4: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

4 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

4 © 2009 IBM Corporation

To create a smarter planet, we must tackle these interrelated imperatives…

GREEN AND BEYONDLimited resourcesI need efficiency…

SMART WORKNew business and process demandsI need to work smart…

NEW INTELLIGENCEData exploding and in silosI need insight…

DYNAMIC INFRASTRUCTURECostly and inflexibleinfrastructureI need to respond faster…

Page 5: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

5 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

5 © 2009 IBM Corporation

Dynamic Infrastructure: A smarter planet needs a smarter infrastructure• We need to rethink and revamp our global infrastructure

for the challenges of the 21st century.

• The convergence of business and IT infrastructure

into one dynamic infrastructure enables new breakthrough

service opportunities.

• The right infrastructure investments can provide

the stimulus for societal and business transformation.

• IBM’s leadership in helping clients harness emerging

capabilities, like cloud computing, provides a foundation

for innovation.

Page 6: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

6 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

6 © 2009 IBM Corporation

A dynamic infrastructure…

.…delivers superior business and IT services with agility and speed

Page 7: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

7 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

7 © 2009 IBM Corporation

A dynamic infrastructure helps you manage and mitigate risks

NEW POSSIBILITIES.NEW RISKS.

BUSINESS RESILIENCYacross globally integrated systems

COMPLIANCE SOLUTIONSfor exploding data volumesand complex regulatory environments

SECURITY FRAMEWORKSpanning physical, IT, mobile, and “smart” assets

….providing the end-to-end approach needed in an interconnected, instrumented and intelligent world

Page 8: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

8 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

8 © 2009 IBM Corporation

Disruptions affect more than the bottom line – in many different industries February 15, 2008 - TechCrunch

Amazon Web Services Goes Down, Takes Many Startup Sites with it

April 28, 2008 – Canada Border Services Agency

CBSA responds to recent system outages

June 6, 2008 - Reuters

Amazon website hit by technical failure – shares fall 4.1% by mid-afternoon trade

June 14, 2008 – PC World

Stock Exchange Risks Sanctions Over System Outages (government pressure)

May 07, 2008 – Harvard University Library

“We were plagued with a rash of system instability issues during March-April”November 27/28, 2006 – Washington Post

Federal Reserve E-Banking System Outages

February 22, 2007 – Wall Street Journal

Bill would punish retailers for leaks of personal data by Joseph Pereira

Page 9: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

9 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

9 © 2009 IBM Corporation

Disruptions come in various guises

“What was the cause(s) of your most significant disaster declaration(s) or major business disruption?”

Power failure

IT hardware failure

Network failure

IT software failure

Human error

Flood

Hurricane

Fire

Winter storm

Terrorism

Earthquake

Tornado

Chemical spill

Other

Don’t knowNever declared a disaster or

major business disruption

4%

12%

1%

2%

3%

24%

4%

6%

7%

10%

12%

16%

16%

21%

31%

42%

” “Building The Business Case For Disaster Recovery Spending”, Forrester Research, Inc., April 2008

Page 10: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

10 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

10 © 2009 IBM Corporation

. . . and disruptions range in business impact

Downtime ranges from 300–1,200 hours per year, depending on industry1

In some industries, downtime costs can equal up to 16 percent of revenue1

For 32 percent of organizations, just four hours of downtime could be severely damaging2

Online security attacks are accelerating, causing downtime and loss of revenue

Data is growing at explosive rates

Security and resiliency are a top area of concern and spend for all size companies

Some industries are enforcing fines for downtime and inability to meet regulatory compliance

Mitigation of compromised personal information is calculated at over $500 per incident3

1 Infonetics Research, The Costs of Enterprise Downtime: North American Vertical Markets 2005, Rob Dearborn and others, January 2005.

2 Continuity Central, “Business Continuity Unwrapped,” 2006, http://www.continuitycentral.com/feature0358.htm

3 IBM Research 2007

Page 11: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

11 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

11 © 2009 IBM Corporation

Without Business Resiliency, one adverse event can threaten the entire ecosystem of a business’ dynamic infrastructure

Finance Folders Sales-customer

relationship management

File servers

Database servers Application servers Web applications Instant messaging E-mail

Data Center

Laptop

Desktop People

E-mailInstant messaging

FoldersFile servers

Application servers

Tape

Asynchronous replication servers

Synchronous replication servers

Archive servers

Web applications

Finance

Sales-customer relationship management

Page 12: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

12 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

12 © 2009 IBM Corporation

What is business resilience?

Business resilience is the ability

to rapidly adapt and respond to

risks, as well as opportunities, in

order to maintain continuous

business operations, be a more

trusted partner, and enable

growth.

Page 13: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

13 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

13 © 2009 IBM Corporation

IBM has identified five high value Entry Points to tackle your business resilience challenges

Challenges: Evaluating, planning, and mitigating the

business impact of various types of risks Responding to compliance pressures associated

with business resilience Ensuring data is protected, available, and

accessible as needed by the business Achieving availability objectives by reducing

frequency and duration of infrastructure applications and data outages

Recovering from and responding to disruptive events

IBM Business Resilience

Page 14: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

14 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

14 © 2009 IBM Corporation

A single enterprise resiliency strategy can mitigate the risk associated with today’s complex business needs

Fre

qu

en

cy o

f o

ccu

rre

nce

s

Consequences per occurrenceLow High

Virus

Worms Disk failure

System availability failures

Pandemic

Natural disaster

Application outage

Data corruption

Network problem

Building fire

Terrorism/civil unrest

Data driven

Event driven

Business driven

Failure to meet regulatory compliance

Workplace inaccessibility

Failure to meet industry standards

Regional power failures

Lack of governance

Page 15: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

15 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

15 © 2009 IBM Corporation

Once risks are understood, an appropriate resilience strategy can be developed

Accept the risk

An exposure is deemed acceptable to the

business

Mitigate the risk

Strategy required and implemented to reduce

risks

Transfer the risk

When it is more cost effective to transfer to

another entity (e.g., insurance, leaseback,

outsource)

Accept Mitigate Transfer

Page 16: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

16 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

16 © 2009 IBM Corporation

IBM uses the Enterprise Resiliency Blueprint to analyze the risk level and work with you to find the right mitigation strategy

Risk mitigation strategies

Strategy and vision

Organization

Processes

Applications and data

Technology

Facilities

Bu

sin

es

s re

sili

en

ce

Page 17: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

17 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

17 © 2009 IBM Corporation

The IBM Global Delivery Method applies standardized processes, tools and methodologies worldwide

We have devised a set of internal methodologies designed to ensure consistent quality and standards across delivery sites

We have created industry-leading software for risk management

We apply assets, tools and standards in a consistent manner worldwide

Reducing the complexity of managing your global continuity programs

Page 18: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

18 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

18 © 2009 IBM Corporation

Key business benefits achieved by IBM clients

Reducing operational cost

Proving value to the business

Increasing customer satisfaction

Mitigating costs associated with downtime

Meeting regulatory compliance

Increasing competitive advantage

Creating an environment which is agile, flexible and responsive to change

Australian Open

Bank of Montreal

Bank of Russia

Bharti Airtel

Centrinet

CLS

DTCC

Geoscience Australia

Montreal Informatica

Nationwide

On Line do Brasil

Swedish Medical Center

Ubench

Western North Carolina Health Network

Client Examples:

Page 19: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

19 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

19 © 2009 IBM Corporation

Bank of Montreal

Business challengeThe Bank of Montreal (BMO), which also serves the U.S. market, paid close attention to new regulations and industry-specific guidelines to address disaster preparedness issued by the U.S. government after September 11, 2001 -- in particular the recommendation to locate back up datacenters beyond the immediate region of a primary facility. The bank's existing secondary data center was located less than 10 km from the primary data site.

SolutionWorking with IBM, BMO set up a new secondary data center 100 km away from its primary site. BMO was the first company to use an innovative new IBM technology to synchronize transactions over this previously insurmountable distance. By bringing its disaster recovery strategy into compliance with federal guidance, BMO has significantly reduced its risk of data loss when recovering from a system failure. Now, BMO can ensure its clients’ data will be available at all times.

Benefits Ability to locate secondary data center at a safe and recommended

distance 100 km away. Ability to recover services less than two hours after a disaster.

Solution Components

IBM System z

IBM Geographically Dispersed

Parallel Sysplex™ (GDPS®), IBMServer Time Protocol (STP)

“Data protection and reputational risk are our critical success factors. Businesses have evolved from paper-based transactions to electronic transactions through a number of channels and are heavily reliant on technology.-- Lee Dunn, vice president of BMO’s Operational Resiliency Program

External

Finding Business Benefit in Regulatory Compliance

Page 20: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

20 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

20 © 2009 IBM Corporation

A large pharmaceutical company…

Business challengeTo comply with changing industry regulations and requirements, this pharmaceutical company needed robust, reliable business continuity and recovery processes. To drive down IT costs and use in-house skills in open systems as well as Microsoft® Windows® and Intel® systems, the company embarked on a project to migrate from a mainframe environment—which was being provided by an IBM competitor—to a distributed environment. It needed business continuity and resiliency services from a leading technology service provider that could provide a scalable, manageable, cost-effective solution and support many hardware and software systems.

BCRS Solution Components IBM Resiliency Consulting

Services IBM Disaster Recovery

Services IBM Information Protection

Services

…saves costs while meeting government-mandated disaster recovery

and data protection regulations – using IBM Global Ser vices.

SolutionRather than staying with its existing service provider, the company switched to the business continuity and resiliency services team from IBM to help ensure business continuity and resiliency in the event of a disaster. IBM provided access to a business resilience center to act as a primary recovery site for more than 130 servers from a variety of vendors. The business resilience center offers various server configurations and the proper support to recover the company’s business-critical applications and data. IBM and the company continually test and evaluate the recovery processes.

Benefits•Gained flexible contract terms to support the company’s changing IT environment•Reduced disaster recovery costs•Automated invoicing processes•Addressed industry requirements for security and protection of customer-related data

Page 21: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

21 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

21 © 2009 IBM Corporation

IBM’s own smart transformation has delivered results

• IBM’s IT transformation continues: our own IT investments over the past 5 years have delivered a cumulative benefit yield of $4.1B

IBM IT Transformation

Cloud-enabled on demand IT delivery solution

• Self-service for 3,000 IBM researchers across 8 countries

• Real time integration of information and business services

• The virtualized environment will use 80% less energy and 85% less floor space

• 2X existing capacity, no increase in consumption or impact by 2010

Project Big Green

• Consolidation and virtualization - thousands of servers onto approximately 30 IBM System z™ mainframes

• Additional virtualization leveraging System p, System x and storage across enterprise

• Substantial savings being achieved in multiple dimensions: energy, software and system management and support costs

Data Center Efficiencies Achieved

1997 Today

CIOs 128 1

Host data centers 155 7

Web hosting centers 80 5

Network 31 1

Applications 15,000 4,700

Improve service/manage risk

• Reduced complexity, increased stability & centralized service management to provide higher quality of service

• Assessed all applications and business functions to ensure provision of world-class security and resiliency

• Multi-site resiliency• Use monitoring and operational tools for service delivery management• Use dynamic allocation of compute power and automatic provisioning

Page 22: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

22 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

22 © 2009 IBM Corporation

Smart is..... a comprehensive suite of proven resilience solutions

• A design and implementation framework based on thousands of proven engagements - designed to align IT and the business

• Servers, storage and hardware designed for business continuity and high levels of availability

• Thousands of skilled consulting and implementation professionals around the globe with industry experience dedicated to solving your resilience need

• Integrated solutions to solve tactical or end to end strategic challenges

• A collaborative approach designed to make you successful

• A variety of sourcing options

• Solutions that can provide backup and recovery, help protect data, replicate data remote and fully integrate site swithing or all system and application resources

• Leadership in RAS, clustering and data mirroring solutions – to provide business continuity and eliminate single points of failure

• Consulting to help ensure the safety and recoverability of your business, your people and your infrastructure

Page 23: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

23 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

23 © 2009 IBM Corporation

Mobile Work Areas

Information Protection

Work area recovery

With the technical capabilities your employees need to remain productiveVirtual Workplace

Global Business Resilience Centers

IBM Resiliency solutions help protect all critical assets – from systems to people

Crisis Management & Response

Information Protection Services

IBM servers, storage, networks

Page 24: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

24 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

24 © 2009 IBM Corporation

Next resilience steps to reduce operational cost, mitigate risk and improve service

Analyze risks to your business by application, system and business unit (workshops, assessments, business impact analysis)

Document availability requirements and measure against your existing implementations (availability assessments, disaster recovery planning and testing, continuity planning)

Use a framework of integrated solutions in a comprehensive approach and assess gaps (business impact analysis, availability assessment, optimization of resilience environment)

Implement actions to enable agility (virtualization, automatic provisioning, logical partitioning, clustering, systems management,)

Regularly review and update your strategy as requirements change (recovery testing, availabiity assessments)

Tie business needs and goals to your risk mitigation strategy (business impact analysis, business continuity planning)

Understand the different sourcing options available (in-house, outtask, managed services, outsource, cloud)

Engage with your client representative or resiliency specialist to understand how to make your infrastructure more dynamic

Page 25: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

25 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

25 © 2009 IBM Corporation

40 years of experience 154 centers in 55 countries around the

globe Over 10,000 clients 100% recovery record Thousands of experts around the world

– with industry expertise

IBM has unmatched global presence with thousands of experts around the globe to

create the right resilience strategy for you

• More than 3,400 information protection clients with over 24 petabytes of data under management

• Ability to deliver - IBM demonstrates resilience leadership daily through successful service delivery

Page 26: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

26 © 2008 IBM Corporation

Thank you!

Page 27: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

27 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

27 © 2009 IBM Corporation

Business challengeTennis Australia organizes and runs the Australian Open two weeks each year,

where millions of eyes and users are on the tournament's official Web site, which

must deliver round-the-clock 100 percent availability.

SolutionTo help provide real-time, flexible, and scalable access to the tennis action, IBM

provides a secure and self-managing infrastructure based on service-oriented

architecture (SOA), and multiple geographically dispersed servers, virtualized as

one, to scale up to support a massive increase in traffic more than 100 times its

typical volume.

Benefits

•Provides 100% secure tournament web-site availability•Provides real-time analysis and prevention of malicious Internet attacks before they gain access to the website infrastructure•Automatic detection of any active security threats, risky user behavior, performance issues and security policy violations•3% reduction in energy consumption and 25% reduction in cooling demands•Flexibly adjusts to fluctuating demands to support 100x normal traffic with automatic provisioning•Centralized management and monitoring of the security systems

Australian Open

Reliably and securely serving tennis to the world with IBM hardware, software and services.

Solution Components

Services● IBM Proventia® Network Intrusion Prevention System (IPS)● IBM Proventia Management SiteProtector ● IBM Global Business Services ● IBM Global Technology Services

Software● IBM Tivoli® Monitoring ● IBM Tivoli Enterprise Console® ● IBM Tivoli Provisioning Manager ● IBM Tivoli Security Compliance Manager

Hardware● IBM BladeCenter® ● IBM System p5™ 550 Express servers with POWER5™ ● IBM System i5® 520 running Linux® on POWER™

“ Making sure our Website can’t get hacked into is a key issue. With IBM, we have been able to keep it tightly locked up and prevent

unauthorized access.” -Dr. Chris Yates, CIO Tennis Australia

Page 28: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

28 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

28 © 2009 IBM Corporation

Bank of Russia

Business challengeAs the central bank for the Russian Federation, the Bank of Russia serves the interests of the state, the Russian people, and private businesses. Its main responsibilities include supporting the Russian currency, managing the national payment system, overseeing money and loans policies, and supervising the country’s financial sector. With a variety of local payment processing systems running on more than 200 distributed servers in 74 data centers across 11 time zones, Bank of Russia faced significant challenges in terms of operational efficiency, technical support, and security.

Solution

Working with IBM and EC-Leasing, the Bank simplified and consolidated its entire infrastructure to just four IBM System z9® Enterprise Class mainframes in two data centers. IBM Global Mirror and Metro Mirror enable mutual fail-over between the data centers, which are separated by a distance of 1,000 kilometers for disaster-protection and business resilience.

Benefits

Payment processing costs reduced by 95 percent, saving US$400 million per year

Server and data center consolidation creates further savings on hardware and software licensing, maintenance and electricity, and increases security

Workload for technical staff has been reduced by 85 percent

Solution Components IBM WebSphere MQ IBM Tivoli OMEGAMON IBM System z™ IBM Business Partner EC-Leasing

“With IBM System z, instead of buying an oversized server and growing into it over the years, we only need to pay for what we use. As volumes increase, we can ask IBM to activate more processors within the mainframe to deal with the demand. “

-- Mr. Mikhail Senatorov, Deputy Chairman, Bank of Russia

Saving US$400 million per year by consolidating to IBM System z9

Page 29: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

29 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

29 © 2009 IBM Corporation

Bharti Airtel

Business challengeIndian telecom services provider Bharti Airtel needed to maximize future flexibility and

growth potential by adopting a business-driven framework for integration, allowing it to

implement and deliver new services rapidly. The company wanted to focus on

developing new services to provide competitive differentiation and strengthen its

customer relationships.

SolutionBharti Airtel signed a ten-year agreement with IBM to transform its processes and take

on management of its IT infrastructure. IBM helped integrate channels and customer-

facing processes – enabling higher customer satisfaction and more profitable growth.

This first-of-a-kind IT outsourcing agreement is a key reason Bharti Airtel has been

able to add 1.5 million new customers per month without a hitch.

Benefits

Improved cross-selling through integration of customer-facing processes Optimization of business processes and infrastructure through flexible, standardized

integration frameworkOutsourcing technology enables Bharti Airtel to focus on growthFlexible pricing model avoids major increases in capital expenditures

“ By working along with us to transform our go-to-market strategies and reinvent our internal processes, IBM has been a partner for the innovation that we see as essential in our ability to sustain our rapid growth.”

– Jai Menon, Group CIO, Bharti Enterprises

Solution Components IBM DB2®

IBM Global Business Services IBM Global Technology Services IBM Service Provider

Delivery Environment IBM Strategic Outsourcing

IBM System p™ IBM System x™ IBM TotalStorage® Enterprise Storage

Servers®

IBM WebSphere® Business Integration Server

IBM WebSphere MQ

© 2008 IBM Corporation

Achieving growth by keeping its focus on the customer

Page 30: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

30 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

30 © 2009 IBM Corporation

Business challengeCentrinet recognized that, despite growing awareness of the benefits of “green” solutions, most data centers in the United Kingdom are still designed with little concern for their environmental impact. The company wanted to break the mold by providing hosting services to customers in a data center that accommodated their business requirements in an environmentally responsible manner. Centrinet sought the help of an experienced IT provider to help build a facility designed to run on renewable energy.

SolutionCentrinet selected a space within a remote nuclear bunker from the 1950s for its new data center and brought in wind turbine specialist Ecotricity to power the 30,000-square-foot data center entirely with renewable energy. Having established the power supply, Centrinet turned to IBM—being familiar with IBM’s outstanding credentials in delivering energy-conscious solutions—for a comprehensive data center solution based on IBM BladeCenter® technology, which integrates servers, networks, storage and applications in one-inch-thick blades that sit in a rack, like a bookshelf. The blades take up much less space and use less energy for the same computing tasks.

BenefitsImplemented an environmentally conscious data center solution that helps cut energy use by approximately 60 percentDesigned an innovative hosting services offering Gained a flexible IBM infrastructure that can scale to meet demand

Centrinet

Building an energy-efficient data center with IBM BladeCenter technology

“We were impressed right from the very first call we put into IBM, in terms of both the product and the levels of service.” — Kelly Smith, managing director, Centrinet

Solution Components

IBM BladeCenter technology

Page 31: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

31 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

31 © 2009 IBM Corporation

Cheshire County Council

Business challengeDriven by growing resource constraints and a government mandate, Cheshire

County Council sought to coordinate the way its various agencies served its

growing senior population. Manual, unconnected processes within its

agencies stood in the way.

SolutionCheshire County Council built a new needs assessment solution

that enabled its agencies to function as a single, “virtual” community

of providers—and served as the nucleus of a process automation

effort that has drastically improved the efficiency and quality of senior care.

Working with IBM and IBM Business Partner Esprit Ltd., the council created a

series of standardised and automated processes that not only lowered costs

but also tightened the social safety net for the council’s senior citizens.

Benefits 20 percent reduction in time and cost required to perform in-home senior

visits Improved ability to proactively manage the course of health and social care

for senior citizens Reduced administrative costs through improved coordination between

healthcare providers and social agencies

“ We're not only helping Cheshire to be at the leading edge in the way it provides services to its older citizens. With IBM's help and insight, we've also developed a whole new model of how local government can provide services to citizens in an innovative and joined-up way.”

– Alan Allman, senior manager for Business Strategy, Planning and Performance, Cheshire County Council

Solution Components IBM Global Technology Services

e-business Hosting™ Services IBM System x IBM Tivoli® Access Manager IBM WebSphere® Application Server Esprit ShareCare for e-Enabled Single

Assessment Process

External

Bringing social service agencies together to deliver person centric care

Page 32: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

32 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

32 © 2009 IBM Corporation

Business challenge

To eliminate the risk of default on foreign exchange (FX) dealings caused by time zone differences and delays, global banks needed to transform FX settlement processes to enable simultaneous and real-time global settlements while accommodating growth and service expansion

Solution

Leading global banks set up CLS Bank to design a unique, innovative real-time process for same-day foreign exchange settlement. CLS partnered with IBM to design, develop and manage the IT applications and infrastructure needed to support the uniquely secure new process. CLS in partnership with IBM has created the world’s only system for the simultaneous and irrevocable settlement of payment instructions associated with FX trades.

Benefits

CLS now provides a streamlined, resilient and innovative service, processing more than 50% of global foreign exchange transactions, peaking at $5.4 trillion a day and growing.

“It would have been difficult to have established and extended this resilient settlement system for one of the world’s major financial markets without the commitment, skills and capabilities of IBM,”

-- Rob Close, Chief Executive Officer of CLS Group and President and CEO of CLS Bank

Continuous Linked Settlement (CLS)

External

Transforming worldwide foreign exchange trading with IBM

Page 33: © 2008 IBM Corporation Dynamic Infrastructure Managing risk with IBM - The Resilient Enterprise Pat Corcoran, IGS BCRS Global Solutions Executive John

33 © 2009 IBM Corporation

Building a smarter planet with a dynamic infrastructure – business resiliency

33 © 2009 IBM Corporation

Depository Trust and Clearing Corporation (DTCC)

Keeping up with growth while keeping markets on firm groundBusiness challenge

The dominant provider of investment processing services in the U.S., DTCC sought to parlay its record of service innovation and cost leadership by expanding globally. To meet the additional processing demands and new service development requirements of these new markets, DTCC needed scalability, reliability and flexibility in its processing platform.

Solution

DTCC teamed with IBM to re-architect its core processing infrastructure to enable it to push its already world-leading transaction capabilities even further to accommodate DTCC’s global growth vision. By re-architecting its systems and doubling its unmatched processing capabilities, DTCC has been able to enter new global markets while developing new services. IBM’s assistance in moving the company toward SOA is a key part of DTCC’s drive toward increased flexibility.

Benefits77% increase in overall transaction processing capacity, enabling TCC to handle 3x the highest volume ever recorded

100% rate of reliability, with $1.5 quadrillion in trades settled annually

25% reduction in cost per transaction, giving DTCC the lowest cost per transaction in the world

Rebates of excess transaction fees of more than $580 million

“Our ability to expand capacity demonstrates our commitment to prepare for unprecedented growth and other risk factors affecting the global marketplace. IBM's technology and vision have been essential to our success in doing this.”

— William B. Aimetti, President and CEO, DTCC

Solution Components

IBM WebSphere® Application Server

IBM WebSphere MQ

IBM DB2®

IBM Tivoli® Composite Application Manager

© 2007 IBM Corporation

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Solution components

IBM System Storage TS3500 Tape Library

IBM System Storage DS4200

IBM Scale Out File Services

“The IBM solution came out favorably in the tender process. In particular it was very favorably priced compared to other options.”

—Paul Trezise, Executive Officer of the Petroleum and Marine Division, Geoscience

Australia

Business challengeGeoscience Australia provides an archive of offshore seismic data and

satellite remote sensing data that has been collected in Australia over the course of many decades. This critical archive is used by the Australian Government to attract international exploration investment to search for petroleum and gas. The archive continues to grow at an exponential rate, and maintaining access began to pose challenges to the agency.

SolutionGeoscience Australia chose IBM Premier Business Partner Tardis

Services to provide an IBM storage solution. IBM Global Technology Services provided information optimization solutions and services to help the customer efficiently manage information and accelerate their knowledge discovery.

Benefits Increases capacity to meet the customer’s growing storage needs Enables faster access to over 1.2 petabytes of research data,

providing exploration companies with a valuable resource in the search for new energy sources well into the future

Helps the customer eliminate manual processes for improved operational efficiency

Geoscience Australia

Ensuring Informed Exploration for a Better Future

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BUSINESS CHALLENGE:As Brazil’s largest IT service provider, MI was selected by Fetranspor, the Public Transportation Federation of Rio de Janeiro, to help transform its ticket distribution system. Fetranspor wanted to streamline its operations to make bus and subway travel more convenient and to cut down on the time passengers spent waiting in line to buy tickets. MI needed a partner with the expertise and technology to help it reengineer Fetranspor’s ticketing processes.

SOLUTION:IBM technology helped MI modernize ticketing for public transportation in Brazil with a smartcard solution that validates travelers instantly and allows them to purchase reusable fare cards online. Validation devices are located in train stations and on buses, and are supported by an e-ticketing application that handles approximately 1.5 million card swipes per day. With help from IBM Business Partner Ingram Micro, MI built Fetranspor’s ticketing solution using scalable IBM DB2 Universal Database information management software featuring DB2 UDB for z/OS and a suite of DB2 tools including DB2 Administration Tool and DB2 Performance Monitor, powerful IBM WebSphere middleware and resilient IBM eServer zSeries hardware.

BENEFITS: Ticket purchase time for travelers cut by 50% Transformed manual processes, decreasing Fetranspor’s overhead costs Provides insight into customer purchasing trends

Montreal Informatica (MI)Building a Smarter Planet

Modernizing ticketing for public transportation with a smartcard system

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Nationwide Insurance

Business challengeFaced with the need to build a new, multimillion-dollar data center to cope with server proliferation and seeking to streamline application development and daily operations overall, Nationwide Insurance instead made a strategic decision to move to a flexible, virtualized IT environment.

SolutionNationwide deployed two IBM System zTM mainframes running Linux.® The solution

is a cornerstone of Nationwide’s strategy of moving all

new development to virtualization and Java 2 Enterprise Edition (J2EE) as a

means of “future-proofing” its IT platform. The new approach to IT has reduced

environmental costs and made the development of new applications far less risky

through the rapid, low-cost and efficient provisioning of server capacity. This

enables Nationwide developers to try new ideas that would otherwise not have

been attempted, fostering innovation and out-of-the-box thinking.

Benefits US$15 million cost savings anticipated over three years 85-90 percent server utilization 80 percent reduction in environmental costs Web hosting costs lowered by 50 percent

“ The ability to flexibly add capacity wherever we need it changes the whole mindset of the developers. It promotes out-of-the-box thinking, because the risk cost is so low. What virtualization really gives us is a strong foundation for innovation.”

– Buzz Woeckener, manager of Linux, Nationwide Insurance

Solution Components IBM DB2®

IBM System z IBM WebSphere® Application Server IBM z/VM®

Linux

© 2008 IBM Corporation

Using virtualization as a foundation for innovation

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Business challengeAfter experiencing rapid growth for more than three years, On Line do Brasil needed to expand its data center operations, which no longer had the power, efficiency or scalability to support the hosting provider's flourishing business. On Line do Brasil sought a solution that would help it expand its data center while providing energy efficiency, advanced management capabilities and high availability for its customers.

SolutionOn Line do Brasil consolidated its existing systems onto three energy-efficient IBM BladeCenter® HS21 XM servers housed in an IBM BladeCenter E Chassis. In addition, the company implemented an IBM System x3550 server to manage the new environment.

IBM SAN Switches provide connectivity between the System x3550 server and a new IBM System Storage® TS3310 Tape Library, which provides four hours of backup for On Line do Brasil's customers who subscribe to the service.

Benefits Cuts management time by 30 percent

Improves system availability and energy efficiency

Expects a full return on investment in as few as three months

“We can proudly promote the IT infrastructure that supports our hosting business. The BladeCenter and System x environment provides our customers with optimal availability and gives us an energy-efficient and cost-effective solution.”

— On Line do Brasil LTDA

On Line do Brasil LTDA

Nourishing its growing business with an energy-efficient, cost-effective IT platform

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Business challengeSwedish Medical Center had launched a US$120 million clinical information system that involved transitioning from paper-based medical records to electronic records. They quickly realized the existing IT environment could no longer keep up with its evolving needs. The client sought a solution provider that could help it extend its existing infrastructure while offering the flexibility the organization needed to meet evolving demands.

SolutionThe Swedish Medical Center engaged IBM Global Technology Services to design and construct a 6,000 square-foot, world-class data center and brought it online in less than 12 months. IBM created a highly available communication network, coupled with the hospital’s redundant network, and built a state-of-the-art network operations center to minimize downtime.

Benefits Improves the ability to focus on providing top-notch healthcare services Enhances quality and speed of medical services and provides noticeable financial savings Monitors IT operations more closely, 24x7

Swedish Medical Center

Leading healthcare system taps IBM to build its world-class data center

“I would never have wanted to attempt this type of project without IBM and its leadership.” — Janice Newell, chief information officer, Swedish Medical Center

Solution Components: IBM Global Technology Services – Site and Facility Services

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Business Challenge:A software provider, UBench aimed to make profit more achievable in the automobile-leasing industry. Leasing companies struggle with keeping prices low to satisfy customers, while spending time and money on fleet maintenance, which means extensive coordination—often via phone or e-mail—with insurance providers and repair shops. Vehicle depreciation squeezes leasers’ margins, and unpredictable vehicle damage drives up costs for everyone involved. UBench sought to streamline industry collaboration and enable greater control over vehicle fleet values.

Solution:Using IBM WebSphere technology, UBench can slow vehicle devaluation by automating key processes and speeding communication. In-car wireless devices notify service facilities of problems in real time to help keep issues minor and easily fixable. After an accident, the system facilitates online collaboration between insurance adjusters and repair shops. IBM DB2 software and IBM eServer xSeries hardware, hosted by IBM e-business Hosting Services, support the solution.

Benefits: Cuts administrative costs per vehicle by 35%, supporting profitability

50% reduction in insurance companies’ adjustment costs

Improved efficiencies increase customer satisfaction and retention

UBench International

“We had a unique vision of how we could transform the entire auto leasing process from end-to-end to make it more efficient and responsive to customers. Only IBM had the technology and know-how to help us realize that vision.” — Director and Cofounder, UBench International

Transforming industry efficiency with automated wireless communication

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Business Challenge:WNCHN sought a way to implement its vision of the availability and exchange of patient data anywhere, anytime, to healthcare providers in its 16 hospitals. WNCHN needed a solution that would allow the decentralized creation and retrieval of electronic patient records and enable their exchange among facilities, and one which would integrate with existing health information systems, rather than replacing them.

Solution:WNCHN engaged IBM Global Business Services, IBM e-Business Hosting and AccessPt Software to design and implement an electronic healthcare record (EHR) exchange system. The system, called Data Link, allows authorized clinicians to view a patient’s electronic records across all 16 WNC hospital systems. Data Link differs from many EHR exchange systems in that it is based on an innovative "virtual" records system that uses the data from hospitals' existing records systems instead of creating a new, centralized system for the Network.

Expected Benefits: Improved patient care through reduced medical errors and unnecessary

treatments Lower overall costs through reduced duplicate lab tests, improved data entry and

document mgmt, and reduce human errors Faster patient records retrieval – from up to 30 minutes to mere seconds, and

better security of medical records

“For several years, WNCHN has been exploring the exchange of electronic medical records. IBM and AccessPt have finally made it happen, quickly and securely, without replacing our existing record systems.” Gary Bowers, Executive Director

Western North Carolina Health Network (WNCHN)

“Virtual” medical records enable sharing of patient data

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41 © 2008 IBM Corporation

Trademarks and notes

IBM Corporation 2008

IBM, the IBM logo and ibm.com are registered trademarks, and other company, product or service names may be trademarks or service marks of International Business Machines Corporation in the United States, other countries, or both. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml

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Other company, product and service names may be trademarks or service marks of others.

References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates.