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$: IBM Global Technology Services · Title (Microsoft PowerPoint - Maximize the value of IT in today\222s economy- Laura Scott, IBM.ppt) Author: Sarah Created Date: 6/23/2009 3:16:40$
IBM Global Technology Services

© Copyright IBM Corporation 2008

CIO ForumMaximize the value of IT in today’s economy

Laura Scott, Vice PresidentService Product Line Sales Global Technology Services

Optimize your IT for growth

© Copyright IBM Corporation 2008IBM Global Technology Services


IT infrastructure is reaching a breaking point.

85% idleIn distributed computing

environments, up to

85% of computing

capacity sits idle.

Consumer product and retail

industries lose about $40

billion annually, or 3.5 percent

of their sales, due to supply

chain inefficiencies.

33% of consumers notified

of a security breach will

terminate their relationship

with the company they

perceive as responsible.

33% $40 billion

Explosion of information

driving 54% growth in

storage shipments

every year.

1.5x 70¢ per $170% on average is spent

on maintaining current IT

infrastructures versus

adding new capabilities.




As the world gets smarter, demands on IT will grow.

Smart traffic systems

Smart water management

Smart energy grids

Smart healthcare

Smart food systems

Intelligent oil field technologies

Smart regions

Smart weather

Smart countries

Smart supply chains

Smart cities

Smart retail




By 2011, the world will be 10 times more instrumented then it was in 2006. Internet connected devices will leap from 500M to 1 Trillion.

2005 2006 2007 2008 2009 2010 20110

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Ex

ab

yte

s RFID,Digital TV,

MP3 players,Digital cameras,

Camera phones, VoIP,Medical imaging, Laptops,

smart meters, multi-player games,Satellite images, GPS, ATMs, Scanners,

Sensors, Digital radio, DLP theaters, Telematics,Peer-to-peer, Email, Instant messaging, Videoconferencing,

CAD/CAM, Toys, Industrial machines, Security systems, Appliances

10xgrowth infive years

Approximately 70% of the digital universe is created by individuals, but enterprises are responsible for 85% of the security, privacy, reliability, and compliance.




… to bring together business and IT to create new possibilities.

Facilities Infrastructure

Facilities Facilities

InfrastructureInfrastructureProductionInfrastructure

ProductionProduction

InfrastructureInfrastructureMobilityInfrastructure

MobilityMobility

InfrastructureInfrastructureTechnologyInfrastructure

TechnologyTechnology

InfrastructureInfrastructureCommunications Infrastructure

Communications Communications

InfrastructureInfrastructure

+ + + +

Infrastructure needs to become more dynamic …




We need to start thinking differently about infrastructure. Weneed a Dynamic Infrastructure….

CostFlexibility

… to free budget for new investment and speed

deployment of new capabilities.




What we’re hearing from clients around the world

We must improveemployee productivity We must realize ROI

in less than one year

We need to conserve capitalWe need to cut costs

We need to do morewith our existing IT




Integrated Communications

Services

IT Strategy and Architecture Services

End User Services

Business Continuity and

Resiliency Services

Middleware Services

Server Services Security and Privacy Services

Storage and Data Services

Site andFacilities Services

Maintenance and Technical Support

Services

GTS ITS portfolio10 Service Product Lines

Our Clients




Global Technology Services are designed to help Reduce costs, achieve greater IT value and improve productivity

Cut costs � Defer capital expenditures

� Ease staffing pressures

� Provide immediate savings and near-term return on investment

Get more from existing infrastructure

Increase productivity




Services that help clients. . .

Cut costs

� IT Optimization Planning

� Server Consolidation Services

� Data Center Energy Efficiency Assessment

� Cloud Computing Offerings NEW!




What is Cloud Computing?

� Some use the word “Cloud” to describe new consumption and delivery models.

� Regardless of terminology, it is clear that these new models are emerging for the enterprise – even if they were first inspired by consumer Internet services.

� Self-service, economies-of-scale, and flexible sourcing options – new choices of deployment – define these new models.


© Copyright IBM Corporation 200812 IBM Global Technology Services


IBM Confidential12

Cloud computing is about the end user.

Banking

Retail

IT

�Self-Service

�Economies of Scale

�Technology Advancement

A user experience and a business model

� Standardized offerings

� Rapidly provisioned

� Flexibly priced

� Ease of access

An infrastructure management and services delivery method

� Virtualized resources

� Managed as a single large resource

� Delivering services with elastic scaling

Similar to Banking ATMs and Retail Point of Sale, Cloud is Driven by:




SELF-SERVE PORTAL

SERVICE REQUEST

SERVICE PROVISIONING

DYNAMICINFRASTRUCTURE

“Self-service” plus standardization drives lower costs and unlocks productivity.




GOVERNANCE

Public …

�Standardized services on the provider’s cloud.

�Access by subscription.

Private …

�Client owned –managed by client or services provider.

�Access defined by client.

Cloud Services

Cloud Computing Model

Considerations …�Speed & flexibility.�Standardization.�Security, privacy, resiliency.

New consumption and delivery models drive new sourcing options and business flexibility.




Smart Business Services – cloud services delivered.

1. Standardized services on the IBM cloud.

2. Private cloud services, behind your firewall, built and/or run by IBM.

Smart Business Systems – purpose-built infrastructure.

3. Integrated Service Delivery Platform

Desktop and Devices

Development and Test

Infrastructure BusinessServices

CollaborationAnalytics

IBM has introduced 3 new choices to deploy workloads with greater efficiency, productivity and control.




IBM Smart Business Test Cloud

• Creates a more efficient test environment that improves productivity and reduces costs

• Includes an operating system, middleware, storage, network and virtual images, along with pre-integrated set of services, from planning through implementation

• Clients can leverage their existing systems or IBM’s new CloudBurst

Test EnvironmentsIn the Cloud

A secure, private cloud environment clients can use to test

applications before sending them to production

Customer Benefits:

�Reduce IT labor cost by 50% + - reduce labor for configuration, operations, management and monitoring of the test environment

�75% + Capital utlizationimprovement; Significant license cost reduction

�Reduce Test Provisioning cycle times from weeks to minutes

�Reduce risk and improve Quality- eliminate 30% + of all defects that come from faulty configurations.




� Allows clients to create a private cloud that enables internet-based PCs and other devices to access applications and data through a centrally managed computing environment

� Maintains highest levels of quality and security in accessing critical information remotely, from any device, anywhere

� Helps clients quickly scale their IT infrastructures to address business demands, while reducing cost and complexity

� Helps clients use up to 73 percent less power than traditional desktops and laptops

Available as two different offerings:� Implementation only services

� Implementation and Managed services

Integrating hardware, software and services in an innovative solution

Customer Benefits� Reduce deskside support costs

by 85-90%

� Reduce help desk calls by 20-40%

� Reduce OS and application update costs

� Easily ensure desktop security and resiliency

� Use up to 73% less power over traditional fat client deployments

Characterized by thin clients, with higher levels of security and resilience,

improved backup and recovery…and reduced cost and complexity associated

with managing the desktop/laptop environment

IBM Smart Business Desktop Cloud




Desktop Cloud delivers significant client savings

80%50%Network Engineering & Support

60%-70%50%Security Engineering

50%

50%

70%

75%

75%

90%

Forecast (Analyst /

IBM)

50%

40%

50%

75%

n/a

Bank

75%Desktop Engineering

70%

20%-40%

30%

60%-70%

85%

Retailer

Software Distribution Staff

Help Desk Support

Power Savings

Security & User Administration

Deskside Support

Value Proposition

“Desktop virtualization

will replace PC

replacement.

Enterprises should use

the budget set aside for a

PC refresh to fund

virtual desktop

initiatives.”

-The Yankee Group




FutureAvailable

New deployment choices.

Smart Business on the IBM Cloud

Smart Business Cloud

Smart Business Systems

Standardized services on the IBM Cloud

Pre-integrated, workload optimized systems

Private cloud services, behind

your firewall, built and/or managed by IBM

Lotus Live

Analytics

IBM CloudBurst

Smart Business Test Cloud

Smart Business Development & Test

on the IBM Cloud

Smart Business Desktop Cloud

Smart Business Desktop on the

IBM Cloud

Information Protection Services; Computing

on Demand

Smart Business for SMB (backed by the IBM cloud)

IBM CloudBurst

Scale out File Services

Analytics Collaboration Development and Test

Desktop and Devices

Infrastructure (compute / storage)

BusinessServices

Analytics




� Reduce IT labor cost by 50% in configuration, operations, management and monitoring.

� Improve capital utilization by 75%,significantly reducing license costs.

� Reduce provisioning cycle times from weeks to minutes.

� Improve quality, eliminating 30% of software defects.

� Reduce end user IT support costs by up to 40%.

Clients have achieved significant benefits …





Get more from existing infrastructure

� Server Virtualization Services

� Storage Optimization and Virtualization

� Network Optimization

� Business of IT Executive Workshop

� IBM Business Resilience Planning

� IBM Internet Security Services




Server management costs impact client budgetsIncreased need to better leverage existing assets

Source: IDC, Preparing for Change: Architecture and Infrastructure Considerations for the Data Center of the Future, Doc # DCFW2008_02, April 2008

Physical server installed base (millions)

$0

$150

$300

Spending(US$B)

0

35

70 Logical serverinstalled base (millions)

Virtualization management gap

New server spending

Server mgmt. and admin. Costs X4

Power and cooling costs X8

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Physical server installed base (millions)

$0

$150

$300

Spending(US$B)

0

35

70 Logical serverinstalled base (millions)

Virtualization management gap

New server spending

Server mgmt. and admin. Costs X4

Power and cooling costs X8

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20101996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

� IDC reports that IT operational labor spend is growing at 10% CAGR ‘03 –’08

� 70% of IT budget goes toward operational overhead

� 85-95% of server capacity is excess –nearly $140B in over expenditure

� IT energy costs have been rising 15% per year over the last 5 years

� Each dollar of new servers cost $0.52 to power and cool – expected to increase to $0.71 in next four years




Optimized and Resilient

� Increase utilizationfrom 10%-30% up to 80%

� Typical TCO savings 30-70%

� Available 24 x 7 x 365

� Reduce costs

� Hardware and software

� Maintenance

� Heating and cooling

� Managed Storage Service

Storage and optimization services help clients Create a more efficient infrastructure




Client Challenge

�Increase visibility across entire global storage environment

�Improve storage utilization

�Reduce over provisioning to meet dynamic business and compliance requirements in mixed vendor environment

Solution

�IBM worked with the customer to achieve optimal levels of utilization, provisioning and transparencyin the client‘s storage environment

Leading global financial services firm Improved storage utilization and increased transparency

Financial Services Company

Client benefits

�Identified $12M in reclaimable assets

�Improved storage management with a unified architecture

�Aggregated reporting and analytics – standardized processes

�Helped client avoid a planned $25M capital expense for additional storage hardware that was no longer needed due to the more efficient and productive environment





Increase productivity

� Service Management Strategy & Planning

� Remote Managed Infrastructure

� IBM Managed Security Services

� Telecom Expense Management

� Converged Communications Services




UnifiedMessaging

IP telephony

Real TimeCollaboration

IP ContactCenter

Network convergence

Business Applications Industry solutions

IPTV & Triple PlayInfrastructure

VideoCommunication

IBM Converged Communications Services

Lower TCO, increased flexibility and resiliency

Improved effectiveness and productivity

Improved customerservice

More competitive business models

•Quicker time to value

•Improved project success rate

•Collaborative system that is more easily supported

•End-to-end project implementation




A summary view of typical savings and payback periods

Payback Period

Savings impact

10%

50%

20%

30%

40%

0 - 3 4 - 6 7 - 12 13 - 18

Remote Managed Infrastructure Services

20%, 12-18 mo

IT Optimization Strategy and Planning

20-40%, 3-18 mo

IP telephony

20-40%, 12 mo

VIA, VIA Managed Services

15-40%, 8-18 mo

Low savings, longer payback....

High savings, Rapid payback

Managed Security Services

Up to 55%,, First year savings

Information Protection Services

Up to 40%, 1-12 mo

Storage Optimization

30% or more, 3-12 mo

IT Lifecycle Mgmt and Governance

15-30%, 3-18mo

Network Optimization

10-30%, 4-12 mo

TEM

15%, 3-9 mo

Server consolidation and virtualization

30-70%, 8-24 mo

Data Center Design and Consolidation

50%, 12-18 mo

Telepresence

30%, 12 mo

Business of IT Workshop

15-30%, 12 mo




This is how we can help

� Providing unique insight into today’s interconnected, instrumented and intelligent world

� Providing the experience, expertise and know-how to help clients:

� Lower costs

� Achieve greater IT value

� Increase productivity

� Providing the solutions businesses need

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